Mumbai, July 24 -- India's data centre industry is expanding beyond the established hubs of Mumbai, Chennai and Hyderabad, with state incentives and rising demand for artificial intelligence (AI) infrastructure driving rapid growth in smaller edge data centres.

Attracted by capital subsidies, cheaper land and tax incentives, operators are setting up facilities in cities such as Bhubaneswar, Patna, Jaipur and Kolkata.

A July 2025 report by Icra Ltd said India's edge data centre capacity is expected to grow at a compounded annual rate of 52%, from 60MW in 2024 to 210MW by the end of 2027, driven by AI adoption, digital services and state-level policy support.

However, industry experts caution that sustaining this expansion of edge data c...