Power shortages, grid stress may prevent AI data centre bubble despite global investment surge: Report

New Delhi: India’s rapidly expanding AI-driven data centre sector is unlikely to face an infrastructure bubble despite aggressive investment activity, as severe power shortages, land constraints and tightening regulations are naturally restricting oversupply, according to a report by global real estate services firm Cushman & Wakefield.

The report said concerns around a possible “AI data centre bubble” are growing globally amid massive investments by hyperscalers and AI companies, but added that current market conditions do not point toward reckless overbuilding.

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