New Delhi, June 2 -- India's data centre sector has entered a strong expansion phase, with total live capacity exceeding 1.6 gigawatts (GW) by the end of 2025, up from about 296 megawatts (MW) in 2016, reflecting a five-year compound annual growth rate (CAGR) of nearly 30 per cent, according to a report by Knight Frank India.

The report titled 'India Data Centre Market Update 2025: Tracking Capacity, Demand and Supply Pipeline' noted that the growth is being driven by rising demand from artificial intelligence (AI), cloud services, and increasing digitalisation.

The sector added 371.5 MW of live capacity in 2025, following a substantial addition of 361.6 MW in 2024, continuing a trend of steady capacity expansion.

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