Hyderabad Enters World’s Top 30 Data Centre Markets as AI Boom Accelerates Growth
Hyderabad: Hyderabad has achieved another major milestone in its journey to becoming a global digital infrastructure hub, entering the top 30 data centre markets worldwide. According to the Knight Frank Global Data Centre Atlas 2026, Hyderabad ranks 27th globally in operational IT capacity and 19th worldwide in future development pipeline, making it one of the fastest-growing data centre destinations in the world.
The report highlights Hyderabad’s rapid transformation into a preferred destination for hyperscale cloud providers, artificial intelligence (AI) infrastructure, Global Capability Centres (GCCs) and enterprise data centre investments. The city now joins Mumbai as one of India’s leading global data centre markets.
Hyderabad Among World’s Fastest Growing Data Centre Markets
Hyderabad currently has approximately 151 MW of operational IT capacity, backed by a development pipeline exceeding 2.2 GW. Industry estimates indicate that operational capacity could grow to nearly 380 MW by 2027, while committed and early-stage projects total around 1.9 GW.
The city’s rapid rise is being driven by increasing demand from cloud computing companies, AI infrastructure providers, multinational technology firms, financial institutions and Global Capability Centres establishing large-scale digital operations in Telangana.
Global Operational Data Centre Rankings
| Rank | City | Country | Operational Capacity (MW) |
|---|---|---|---|
| 1 | Ashburn | USA | 5,636 |
| 2 | Columbus | USA | 1,958 |
| 3 | Dallas | USA | 1,936 |
| 4 | Phoenix | USA | 1,865 |
| 5 | Atlanta | USA | 1,724 |
| 6 | Tokyo | Japan | 1,473 |
| 7 | London | United Kingdom | 1,467 |
| 8 | Dublin | Ireland | 1,254 |
| 9 | Chicago | USA | 1,123 |
| 10 | Singapore | Singapore | 1,118 |
| 15 | Mumbai | India | 774 |
| 27 | Hyderabad | India | 151 |
Top Markets by Future Development Pipeline
| Rank | Market | Pipeline IT Capacity (MW) |
|---|---|---|
| 1 | Atlanta (USA) | 27,028 |
| 2 | Ashburn (USA) | 15,981 |
| 3 | Chicago (USA) | 9,074 |
| 4 | Dallas (USA) | 8,901 |
| 5 | Johor (Malaysia) | 8,542 |
| 11 | Mumbai (India) | 4,993 |
| 19 | Hyderabad (India) | 2,265 |
Hyderabad’s Data Centre Snapshot
| Metric | Value |
|---|---|
| Global Operational Rank | 27th |
| Global Pipeline Rank | 19th |
| Operational Capacity | 151 MW |
| Development Pipeline | 2.2 GW+ |
| Expected Capacity by 2027 | 380 MW |
| Committed & Early Stage Projects | 1.9 GW |
Major Projects Fueling Hyderabad’s Growth
Several large-scale investments are accelerating Hyderabad’s emergence as a global digital infrastructure hub. CtrlS Datacenters is developing a 612 MW hyperscale data centre campus at Chandanvelly Industrial Park, with nearly 250 MW already secured for the first phase.
NTT DATA, Neysa Networks and the Telangana Government are jointly establishing a 400 MW AI-focused data centre cluster capable of supporting nearly 25,000 GPUs. Meanwhile, Nxtra by Airtel is constructing its largest Hyderabad data centre campus, spread across nearly 40 acres with a planned capacity of around 200 MW.
AI and GCC Demand Driving Growth
Artificial Intelligence, cloud computing, digital banking, fintech, semiconductor companies and Global Capability Centres (GCCs) are significantly increasing demand for hyperscale data centres across Hyderabad. Industry experts believe the city’s reliable power infrastructure, availability of land, strong fibre connectivity, skilled workforce and proactive government policies continue to attract global technology companies.
Boost for Telangana’s Digital Economy
The rapid expansion of Hyderabad’s data centre ecosystem is expected to generate thousands of high-skilled jobs in engineering, networking, cloud services, AI, cybersecurity, facility management and electrical infrastructure. The investments will also strengthen Telangana’s ambitions of becoming India’s leading AI, cloud computing and digital infrastructure hub.
With over 2.2 GW of future capacity planned and several mega campuses under development, Hyderabad is rapidly establishing itself among the world’s most promising data centre markets, reinforcing its reputation as a preferred destination for global technology and digital infrastructure investments.
