India's Data Centre Boom Faces Security Blind Spot

India's data centre industry is experiencing rapid growth, but this expansion is accompanied by significant security challenges. As these critical digital infrastructure hubs multiply, they become more attractive targets for cyberattacks, physical disruptions, and geopolitical threats.

The stakes are rising as data centres increasingly support AI platforms, financial systems, and essential government functions. Consequently, attacks or disruptions can have far-reaching consequences that extend beyond the immediate service provider.

A recent incident linked to the Kudankulam Nuclear Power Plant highlights these escalating cybersecurity risks. Approximately 19,000 files allegedly related to the plant surfaced on the dark web after the ransomware group World Leaks claimed a breach involving one of the plant's contractors. The leaked data included facility blueprints, supplier details, and inspection records. Reliance Group confirmed a "partial breach" affecting data stored on a server hosted by Yotta Data Services.

India's data centres attracted $1.56 billion in foreign investment in the first half of 2026, driven by demand for AI and cloud services. The threat landscape is becoming more complex, with insider threats and external manipulation identified as major concerns for data centres, closely followed by ransomware. AI-powered identity attacks, advanced persistent threats, and DDoS attacks also pose significant risks.

As data centres become indispensable for AI, financial services, government, and national security, their security—including that of third-party infrastructure—is paramount for enterprises relying on these services. The financial costs of data breaches in India have risen substantially, and companies face additional risks from service disruptions, recovery expenses, regulatory scrutiny, and contractual liabilities.