New Delhi, July 23 -- India's data centre sector is set for significant expansion as rising artificial intelligence (AI) adoption, cloud computing and enterprise digitalisation fuel demand, though challenges related to land acquisition, power availability and execution complexity are likely to shape the pace of growth, according to a report by JM Financial.

The report said the domestic data centre industry remains at a nascent stage despite robust long-term growth prospects, with access to land and power emerging as the biggest differentiator for developers.

According to the report, companies that have already executed large data centre projects or possess land banks with grid connectivity are expected to enjoy a competitive advantage a...