India’s data-centre race accelerates as Yotta, Nxtra, Sify and rivals scale AI capacity

India’s operational data-centre capacity, now about 2 GW, is projected to double by 2028 as Yotta, Airtel’s Nxtra, Sify, CtrlS and major conglomerates commit billions to AI-ready campuses. Power availability is emerging as the sector’s key constraint.

— Source publishedFri, 25 Sept, 2026, 01:22 IST·First seen Fri, 25 Sept, 2026, 01:48 IST·Source Financial Express · BrandWagon

What happened

Yotta Data Services · India’s data-centre buildout is accelerating, led by Yotta, Sify, CtrlS and Airtel’s Nxtra alongside Reliance, Tata and Adani. Investments

Key facts

  • Yotta plans to invest $2-2.5 billion in coming months and can scale to 2 GW
  • India operational data-centre capacity is about 2 GW, projected to reach 4 GW by 2028
  • India data-centre investments could exceed $250 billion over five years
  • Sify operates 14 centres across six cities with 188 MW capacity and annualised revenue of Rs 5,000 crore
  • Sify secured $371 million debt financing and plans about $5 billion investment

What changed

India’s data-centre buildout is accelerating, led by Yotta, Sify, CtrlS and Airtel’s Nxtra alongside Reliance, Tata and Adani. Investments target AI-ready capacity, but grid availability and power supply are emerging as key constraints.

Why this matters

Retail operators should secure AI and cloud capacity early, as India’s data-centre buildout will expand capability but power bottlenecks could limit availability and raise costs.

What to watch

  • State-wise power-allocation commitments, transmission approvals and renewable PPAs for announced campuses.
  • Actual commissioned MW versus announced capacity and construction timelines at Yotta, Nxtra, Sify and CtrlS.
  • Grid curtailment, industrial tariff changes and diesel-generator restrictions in major data-centre hubs.
  • AI GPU import availability, cloud-region launches and anchor-tenant leasing announcements.
  • Large retailer announcements of domestic AI cloud partnerships, data-residency migrations or AI-led operating-cost targets.