Hyderabad Among World’s Fastest-Growing Data Centre Markets: Knight Frank Report
Mumbai, Aug. 6 (TNT): Hyderabad has emerged as one of the world’s fastest-growing data centre markets, ranking 27th globally in operational data centre capacity and 19th in future development pipeline, according to the Knight Frank Global Data Centre Atlas 2026 report released on Thursday.
The report, which assesses 36 leading data centre markets across North America, Europe, Asia-Pacific, the Middle East and Africa, said Hyderabad currently has 151 MW of live IT capacity, supported by a development pipeline of over 2.2 GW, reflecting strong investor confidence and long-term growth prospects.
It projected Hyderabad’s operational capacity to increase from about 188 MW by the end of 2025 to nearly 380 MW by 2027.
The city has around 1.9 GW of committed and early-stage projects, second only to Mumbai in India, the report revealed.
According to the report, most of the upcoming data centre developments are located in technology parks on the outskirts of Hyderabad, where large land parcels and improved infrastructure support campus-scale projects.
Major projects include CtrlS’ 612 MW data centre park at Chandanvelly Industrial Park, a 400 MW artificial intelligence-focused cluster being developed by NTT Data, Neysa Networks and the Telangana government, and Nxtra by Airtel’s proposed 200 MW data centre campus.
The report said hyperscale cloud providers, including Amazon Web Services (AWS), Microsoft and Oracle, are expanding their presence in Hyderabad through owned facilities and colocation partnerships, reinforcing the city’s position as a key digital infrastructure hub.
Knight Frank, however, noted that expansion of power supply and network connectivity to peripheral areas remains a key challenge for large-scale developments, although ongoing infrastructure investments are expected to support future growth.
Knight Frank India Executive Director and Head of Data Centre Business Joseph Thilak said India’s data centre market was entering a more mature phase, driven by sustained cloud adoption, artificial intelligence-led computing demand and rapid enterprise digitalisation, with favourable demand fundamentals and policy support expected to strengthen the country’s position as a leading data centre hub in Asia.
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