India’s data center ecosystem is entering a rapid growth phase, driven by AI, says Kotak Mutual Fund. Globally, AI is tripling data center demand, and India is emerging as a hub. Although 20% of global data demand is from India, only 3% is stored locally, highlighting huge expansion potential. India’s AI market is growing 35% annually, with AI data center capacity set to triple by 2027, powered by hyperscalars. By 2030, capacity could rise from 41MW in 2024 to 619MW. Government incentives, localisation, and cloud adoption position India as a global AI infrastructure hub. Key aspects:
Published on September 23, 2025