Business EconomyPosted at: Jun 3 2026 8:36PM


Hyderabad emerges as major Data Centre Hub, capacity rises to 151 MW with 1.9 GW Pipeline: Knight Frank report

Hyderabad, June 3 (UNI) Hyderabad has emerged as one of India's fastest-growing data centre markets, with its live data centre capacity more than doubling to 151.4 MW by the end of 2025 and a massive 1.9 GW development pipeline positioning the city as a leading hyperscale and artificial intelligence (AI) infrastructure hub, according to a report released by Knight Frank India.
The report on ‘India Data Centre Market update 2025: Tracking Capacity, Demand and Supply’ Pipeline’, stated that Hyderabad's live capacity increased from 60.9 MW in 2022 to 151.4 MW in 2025, reflecting the city's rapid transformation from an IT/ITeS-driven market into a strategic destination for hyperscale and AI-focused investments.
Knight Frank noted that Hyderabad's pipeline of under-construction, committed and early-stage projects has expanded to nearly 1.97 GW, second only to Mumbai among India's major data centre markets.
The growth is being driven by strong operator preference for large campus-scale developments and Telangana's push to establish itself as a global AI data centre hub.
The report highlighted that state incentives for high-density graphics processing units (GPUs), large-scale AI training infrastructure and liquid cooling technologies, coupled with Hyderabad's disaster-resilient geography, are making the city an attractive alternative to more expensive coastal locations.
Major operators such as NTT and AdaniConneX are aggressively expanding their footprint in the city.
Among India's key data centre markets, Hyderabad's live capacity of 151.4 MW places it ahead of Kolkata and close to Pune and Bengaluru, while Mumbai continues to lead with 766.6 MW.
The report also pointed to the growing presence of global hyperscalers in Hyderabad. Microsoft is set to launch its India South Central data centre region in Hyderabad in 2026, while Amazon Web Services (AWS) currently operates three availability zones in the city and accounts for 46 per cent of Hyderabad's live IT capacity.
Oracle has also announced plans to establish a data centre in Hyderabad to expand its cloud infrastructure in India.
Demand patterns in the city are evolving rapidly. Hyderabad recorded a historic data centre absorption of 19.2 MW in 2024, signalling increasing dominance of hyperscale demand.
Although absorption moderated in 2025, vacancy levels averaged 23 per cent, indicating that the market remains in an expansion phase as operators prepare for future AI-driven requirements.
At the national level, India's data centre market crossed 1.6 GW of live IT capacity by the end of 2025. The country added 371.5 MW of live capacity during 2025, following a substantial addition of 361.6 MW in 2024, underscoring sustained growth driven by AI adoption, cloud computing, enterprise digitisation and data localisation requirements.
Commenting on the findings, Shishir Baijal, International Partner, Chairman and Managing Director of Knight Frank India, said the Indian data centre sector is undergoing a structural transformation and has become one of the foundational pillars of the country's digital economy, supported by AI-led workloads, hyperscaler investments, cloud adoption and sovereign data requirements.
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