New Delhi, May 22 -- India's rapidly expanding AI-driven data centre sector is unlikely to face an infrastructure bubble despite aggressive investment activity, as severe power shortages, land constraints and tightening regulations are naturally restricting oversupply, according to a report by global real estate services firm Cushman & Wakefield.

The report said concerns around a possible "AI data centre bubble" are growing globally amid massive investments by hyperscalers and AI companies, but added that current market conditions do not point toward reckless overbuilding.

"It is important to distinguish between an AI data center infrastructure bubble and a broader AI investment bubble," the report said.

The report clarified that while...