Driven by the needs of artificial intelligence (AI), the global data centre market has seen several large deals, with India set to follow suit. ICRA also highlighted that favourable policies and infrastructure status will significantly contribute to the sector’s growth. India’s major data centre hubs include Mumbai, Chennai, and Hyderabad, with co-location services playing a major role in revenue generation.

ICRA also noted that the growing number of data centre developers in India may impact rental prices, as hyperscalers are gaining more negotiation power.