Brookfield forecasts 6.5 GW of AI data centre capacity in India over the next five years

India’s data centre industry is entering a new phase of expansion as artificial intelligence drives demand for larger and more advanced digital infrastructure. Global investment firm Brookfield Asset Management expects around 6.5 GW of AI-focused data centre capacity to come online across the country over the next five years, signalling strong long term confidence in India’s digital economy.

The projection reflects the growing need for facilities capable of supporting AI workloads, cloud computing, high performance computing and data storage. As businesses adopt generative AI, machine learning and advanced analytics, demand for reliable and energy efficient data centres is expected to increase significantly.

Industry experts believe India is well placed to become a leading destination for digital infrastructure investments. The country offers a large technology ecosystem, increasing internet usage, expanding cloud adoption and strong policy support for digital transformation. These factors are encouraging both domestic and international investors to strengthen their presence in the sector.

According to Savills India, operational data centre capacity reached around 1.8 GW in the first half of 2026 after fresh additions of 258 MW, representing annual growth of 59 per cent. The consultancy expects total capacity to exceed 7 GW by 2030, supported by continued investments from hyperscale cloud providers and enterprise customers.

Major cities such as Mumbai, Chennai, Hyderabad, Bengaluru, Delhi NCR and Pune continue to attract new developments because of strong connectivity, power availability and proximity to enterprise customers. Mumbai remains India’s largest data centre market, while Hyderabad and Chennai are emerging as important hubs due to competitive operating costs and expanding technology ecosystems.

The rapid expansion is also creating opportunities for the real estate and infrastructure sectors. Developers are increasingly acquiring large land parcels suitable for hyperscale campuses, while utilities and engineering companies are investing in power transmission, cooling systems and network connectivity. Demand for industrial land with reliable electricity supply is expected to remain strong as more AI-driven facilities are announced.

However, industry participants acknowledge that scaling the sector will require continued investment in power infrastructure, renewable energy integration and skilled talent. Land availability in strategic locations and timely approvals will also remain important factors for future growth.

For India’s infrastructure sector, the outlook presents an opportunity to build assets that support the country’s digital ambitions. As AI adoption accelerates across industries, data centres are expected to become one of the fastest growing infrastructure segments, generating investment across construction, utilities, telecommunications and commercial real estate. Brookfield’s latest forecast underlines the scale of that opportunity and reinforces India’s position as a rising global destination for digital infrastructure investment.