AI sparks India’s data center expansion: Kotak Mutual Fund - The Hindu BusinessLineSENSEX 82,102.10 -57.87NIFTY 25,169.50 -32.85CRUDEOIL 5,657.00+ 135.00GOLD 113,848.00+ 1,618.00SILVER 135,240.00+ 1,685.00SENSEX 82,102.10 -57.87NIFTY 25,169.50 -32.85NIFTY 25,169.50 -32.85CRUDEOIL 5,657.00+ 135.00CRUDEOIL 5,657.00+ 135.00GOLD 113,848.00+ 1,618.00'; } document.getElementById("lgdv").innerHTML = htmlElements; } function numberformat(i) { return Number(parseFloat(i).toFixed(2)).toLocaleString('en', { minimumFractionDigits: 2 }) } async function gatherResponse(response) { const { headers } = response; const contentType = headers.get('content-type') || ''; if (contentType.includes('application/json')) { return await response.json() } return response.text(); } function getWidth() { if (Math.max(document.body.scrollWidth,document.documentElement.scrollWidth,document.body.offsetWidth,document.documentElement.offsetWidth,document.documentElement.clientWidth) > 991) { document.getElementById("mob").style.display = "none"; document.getElementById("lgdv").style.display = "block"; } else { document.getElementById("mob").style.display = "block"; document.getElementById("lgdv").style.display = "none"; } } getWidth();]]>| Photo Credit: iStockphotoIndia’s data center ecosystem is entering a rapid growth phase, driven by AI, says Kotak Mutual Fund. Globally, AI is tripling data center demand, and India is emerging as a hub. Although 20% of global data demand is from India, only 3% is stored locally, highlighting huge expansion potential. India’s AI market is growing 35% annually, with AI data center capacity set to triple by 2027, powered by hyperscalars. By 2030, capacity could rise from 41MW in 2024 to 619MW. Government incentives, localisation, and cloud adoption position India as a global AI infrastructure hub. Key aspects:Published on September 23, 2025Sign into Unlock benefits!Access 10 free stories per monthAccess to comment on every storySign up/Manage to our newslettersGet notified by email for early preview to new features, discounts & offers${ ind + 1 } ${ device }Last active - ${ la }