Cushman & Wakefield Report Rejects India AI Data Center Bubble

A report by Cushman & Wakefield concludes that India's AI-driven data center sector is unlikely to experience an infrastructure bubble despite aggressive global investments. The firm distinguishes this physical infrastructure from a broader AI investment bubble related to company valuations, noting that demand for data capacity continues to exceed available supply.

Severe power shortages, land constraints, and tightening government regulations are naturally restricting oversupply and preventing reckless overbuilding. Grid power availability remains the chief concern in the industry, as power is necessary for compute. Similar bottlenecks and strict regulations have already affected markets in Amsterdam and Dublin, pushing developers toward rural secondary and tertiary markets.

In India, Google is expanding its footprint with a planned gigawatt-scale hub in Vizag. However, the report warns that securing sufficient electricity remains the primary obstacle for India and other fast-growing markets.