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AI boom drives India's data centre growth, leasing crosses 2 GW

Artificial intelligence is rapidly reshaping India’s data centre industry, with AI-related workloads accounting for nearly 20 per cent of total colocation leasing demand in 2025. A report by Knight Frank India highlights strong growth in hyperscale cloud adoption, enterprise digitisation and AI-driven infrastructure investments

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Artificial intelligence-led demand is emerging as a defining force in India’s data centre sector, with cumulative colocation leasing reaching 2.06 GW in 2025, a report said on Tuesday.

As per analysis by Knight Frank India, nearly 20 per cent of total leasing demand is now directly linked to AI-related workloads, as generative AI, machine learning applications and GPU-intensive computing reshape infrastructure requirements across industries.

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