A quiet transformation is underway on the outskirts of Mumbai. Warehouses and industrial plots that once attracted manufacturers are increasingly drawing some of the world’s biggest infrastructure investors. Their target is not automobiles or factories. It is computing power.
Australia’s AirTrunk, backed by Blackstone, plans to invest $21.05 billion in a 3 GW data-centre campus in Maharashtra’s Raigad Penn Growth Centre.
The scale of the project makes it one of the biggest bets on India’s digital infrastructure and reflects a broader global trend. Investors are beginning to view India, and particularly Mumbai, as a critical node in the artificial intelligence economy.
Mumbai Emerges As Hub
Mumbai’s advantages extend far beyond being India’s financial capital.
The city hosts key financial institutions, stock exchanges and corporate headquarters. More importantly, it has extensive subsea cable connectivity and relatively strong power infrastructure, making it an ideal location for hyperscale facilities.
JLL reported that India’s total data-centre inventory reached 1,123 MW in the first half of 2025. Demand remains robust, with net absorption rising 48% year-on-year. Mumbai continues to dominate the country’s digital infrastructure landscape.
Industry executives estimate that nearly half of India’s installed capacity is concentrated around Mumbai, reinforcing its position as the country’s data-centre capital.
AI Demand Changes Equation
The boom is being driven by artificial intelligence.
Unlike conventional cloud services, AI workloads require enormous computing resources and power-intensive facilities. Training and running large AI models demand far greater capacity than traditional enterprise applications.
This shift is pushing infrastructure providers to build at unprecedented scales.
AirTrunk’s planned 3 GW campus alone exceeds India’s current operational capacity, which Business Standard, citing Vestian, estimates at 1.4-1.6 GW across 164 facilities.
Such numbers illustrate how AI is reshaping infrastructure investment. Data centres are increasingly becoming the digital equivalent of power plants and ports.
Foreign Capital Flows Rise
Global money is pouring into the sector.
According to Vestian data published by Business Standard, India’s data-centre industry attracted between $13 billion and $15 billion in investments between 2020 and 2024. Foreign institutional investors accounted for nearly 80% of total inflows.
The attraction is straightforward.
India offers one of the fastest-growing digital economies, a massive internet user base and rising enterprise demand for cloud and AI services. Government incentives for companies using domestic data centres are also adding to investor enthusiasm.
Reuters reported that more than $630 billion in investments from US technology giants are expected this year, further strengthening India’s appeal as an AI infrastructure destination.
Capacity Expansion Accelerates
The sector’s growth trajectory remains steep. Colliers estimates India’s capacity stood at 1,263 MW in April 2025 and could surpass 4,500 MW by 2030.
Meanwhile, Business Standard reported that the market itself could expand from $10 billion in 2025 to $22 billion by 2030.
More than 700 MW of capacity is already under construction, suggesting that the next phase of growth has already begun.
Domestic conglomerates are also joining the race. Reliance Industries and the Adani Group have announced large-scale investments in AI and digital infrastructure, highlighting the strategic importance attached to computing capacity.
Infrastructure Race Intensifies
The competition unfolding around Mumbai is ultimately about much more than data storage.
Countries are increasingly competing for AI computing capacity because control over digital infrastructure is becoming as strategically important as ports, roads and energy assets.
For global investors, Mumbai offers a rare combination of scale, connectivity, policy support and demand.
AirTrunk’s $21 billion commitment signals that India’s financial capital is evolving into something bigger. It is positioning itself as one of the world’s most important gateways for the AI era.
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