India’s data centre expansion is witnessing a major geographic shift as the focus gradually moves from western and southern hubs toward eastern India. West Bengal is now being positioned as a key location for hyperscale data centres, AI infrastructure and large research-and-development investments.
For years, cities like Mumbai, Chennai and Hyderabad dominated India’s data centre growth because of cable landing stations, infrastructure and policy support. But the Centre is now actively engaging global hyperscalers and large Indian conglomerates to build digital infrastructure in Bengal.
According to people familiar with the discussions, senior officials from the Ministry of Electronics and IT have recently held talks with Google, Amazon Web Services, Microsoft, Reliance Industries and Adani Group regarding hyperscale data centres and R&D facilities in the state. Several proposals are expected to move forward by June.
The eastern push is being driven by practical advantages. Hyperscale data centres require large land parcels, reliable power, water access and renewable energy availability. Eastern India offers all these resources while also providing access to Bay of Bengal cable systems and Southeast Asian digital traffic.
Kolkata is also emerging as an attractive alternative because major hubs like Mumbai, Chennai and Hyderabad are facing rising land costs, congestion and increasing pressure on power infrastructure.
At the centre of Bengal’s strategy is the Bengal Silicon Valley Tech Hub near Kolkata. The project aims to attract nearly ₹30,000 crore in investments across AI, data centres and global capability centres. Multiple companies have already received land allotments, and construction activity is underway.
Reliance Industries and the Adani Group are also reportedly evaluating locations in Bengal as part of their expanding AI-ready data centre plans.
The development is also politically significant as both the Centre and the state government appear aligned on promoting digital infrastructure growth despite past policy differences.
If the expected announcements materialise, Bengal could attract AI labs, R&D centres, engineering jobs and hyperscaler infrastructure teams. However, experts say the state must still address challenges linked to power reliability, water supply and connectivity infrastructure.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.