India's Data Centre Capacity Grows Fourfold to 1,575 MW as AI Drives Demand
According to the Ministry of Electronics and Information Technology (MeitY), data centres are primarily developed, owned and operated by private companies, with investments coming from both domestic and global players. The Government does not provide subsidies for setting up data centres, with companies selecting locations based on demand, power availability, skilled workforce, operating costs and long-term commercial viability.
Major data centre hubs include Mumbai, Navi Mumbai, Chennai, Hyderabad, Bengaluru, Delhi-NCR and Gujarat, while the industry is expanding into Andhra Pradesh, Madhya Pradesh, Chhattisgarh and West Bengal as emerging investment destinations.
The Ministry noted that the rapid adoption of AI is driving demand for advanced data centre infrastructure, prompting operators to deploy high-density racks and next-generation cooling technologies such as direct-to-chip liquid cooling, immersion cooling and adiabatic cooling. The industry is also shifting towards closed-loop liquid cooling systems, which significantly improve water-use efficiency while reducing power and water consumption.
The Ministry added that groundwater extraction for industrial purposes, including data centres, continues to be regulated under the guidelines issued by the Ministry of Jal Shakti.
Published on:
07 August 2026
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