Mumbai continues to dominate India’s growing data centre industry, with nearly half of the country’s total capacity concentrated in the city, according to leading technology entrepreneurs and investors.
Speaking ahead of the Tech Entrepreneurs Association of Mumbai (TEAM) event, Sharad Sanghi, founder and CEO of Neysa AI, said Mumbai’s strong enterprise ecosystem, connectivity infrastructure and concentration of financial institutions make it the country’s leading data centre hub.
“Mumbai is the data centre capital of India. Nearly 50% of India’s data centre capacity is here,” Sanghi said. “The next wave of AI adoption will be enterprise-led, and Mumbai is where those enterprises are headquartered.”
Industry leaders noted that Mumbai’s role as India’s financial and commercial capital, combined with access to subsea cable infrastructure, reliable power supply and the presence of major corporations, continues to drive demand for digital infrastructure and AI-related investments.
According to a report by financial services firm Avendus, India’s data centre sector has recorded nearly $5 billion in transaction activity over the last three years, supported by institutional investors, infrastructure funds and global operators. The report also estimates that three to four data centre-related IPOs could emerge in the next few years.
The growing adoption of artificial intelligence is expected to further accelerate infrastructure demand. Industry estimates suggest that between 650,000 and 700,000 GPUs may be deployed across Indian data centres over the next five years, creating an investment opportunity worth nearly $23 billion.
Aakrit Vaish, co-founder of AI-focused investment fund Activate, said India currently has more than 100 emerging AI startups, though global competition and rising capital requirements remain major challenges.
On the employment front, Naiyya Saggi, founder of BabyChakra and appliance brand EDT, said Mumbai is witnessing strong demand for AI-related talent.
“Last year, we started with a job fair. This year, we have received over 30,000 applications for AI-related jobs, all based out of Mumbai,” Saggi said. “AI is not killing jobs in India — it is creating an entirely new category of them.”
Industry leaders also highlighted the importance of India-focused AI models, policy support and faster innovation as the country looks to strengthen its position in the global artificial intelligence ecosystem.
Source: The Economic Times
