The Government has emphasized the rapid growth of data centre capacity to support India's Digital and AI infrastructure. Data centres are essential for the Digital India ecosystem, and the industry is steadily growing. The increasing demand for data centre capacity is driven by AI and high-performance computing. Most data centres in India are developed, owned, and operated by private companies, which consider factors like demand, costs, power availability, skilled labor, and business viability for location choices. The sector is funded by both domestic and foreign investors, and there are no government subsidies for data centre establishment. Data centres are located in areas like Mumbai, Chennai, Hyderabad, and Delhi NCR, with capacity increasing from 375 MW in 2020 to about 1,575 MW now. Expansion is also occurring in Andhra Pradesh, Madhya Pradesh, Chhattisgarh, and West Bengal.
