A strong wave of global technology investments is reshaping Bengaluru’s position in India, as leading AI companies set up operations and increase demand for commercial real estate.
Companies ranging from AI research labs to large software firms are increasingly selecting Bengaluru as their India base, strengthening its role as a hub for AI-led innovation.
Anthropic opened its Bengaluru office in February at The Executive Centre near Embassy Golf Link, marking its 2nd Asian base after Tokyo. India has already become the 2nd-largest user base globally for its Claude platform.
Soon after, OpenAI announced plans to open offices in Bengaluru and Mumbai by late 2026, adding to its presence in New Delhi. Meanwhile, Mistral AI is in talks with the Karnataka government to set up a global capability centre, starting with engineering teams and later expanding into advanced research and LLM development.
Enterprise AI companies are also expanding. OpenText has increased its Centre of Excellence to over 70,000 sq ft and is running its OpenText 3.0 AI strategy from India.
Flexible workspace providers such as Smartworks, WeWork India, IndiQube, and Table Space report multiple deals ranging from 50 to 700 seats with AI startups, indicating rising demand for managed offices.
Bengaluru accounted for 48% of total GCC leasing in India in Q1 2026. The city ranks 5th among the top 50 global AI cities, with 50% of India’s AI/ML talent pool based in Karnataka and 48% of GCC workforce engaged in high-end engineering and R&D roles.
“Bengaluru is no longer competing with Hyderabad or Pune for the next GCC. It is competing with Singapore and London for the next generation of AI research and product ownership mandates—and it is winning that conversation,” said Juggy Marwaha. “What gives me real confidence is what this government is building — the metro expansion, the audacious tunnel road corridor. When you pair that infrastructure ambition with the talent and technology momentum already in motion, Bengaluru becomes a genuine global city story.”
Embassy REIT reported 4.6 million sq ft leasing in FY26 so far, with Bengaluru contributing over 2/3 of the activity and maintaining 95% occupancy. “AI-first firms are making decade-long commitments to Bengaluru’s premium corridors—and the quality of that demand is unlike anything we have seen in prior GCC cycles. What we are witnessing is not transactional demand,” said Amit Shetty.
Key micro-markets like Outer Ring Road, Whitefield, and Koramangala are seeing increased activity, with ORR emerging as the main AI corridor.
“Some of the micro-markets in Bengaluru are now functionally the world’s most concentrated strip of AI capability outside of San Francisco. With half of India’s AI/ML workforce here and 1,000-plus GCCs already embedded in the ecosystem, there is no substitute geography on the planet,” said Chan Chakravarti.
Projections estimate GCC leasing at 60–65 million sq ft during 2026–2027, marking 15–20% growth. “Two years ago, a GCC signing was a cost-arbitrage story. Today, when a frontier AI lab signs in Bengaluru, it is a talent-and-innovation-arbitrage story,” said Jayaram S Govindaiah.
The Karnataka government aims to capture nearly 50% of India’s GCC market by 2029, with expected growth at a CAGR of 12–14%.
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