With several global artificial intelligence firms choosing Bengaluru as their India base, industry experts cite a unique convergence of deep AI talent, robust digital infrastructure, established global capability centres and a flexible office ecosystem that enables rapid scaling while maintaining control over core innovation.
Several AI firms, including Anthropic and OpenAI, have already announced plans to set up offices in Bengaluru. California-based Anthropic has recently signed up for a co-working office space in the city’s eastern IT corridor, people aware of the developments told Hindustan Times Real Estate.
“Our new Bengaluru office, Anthropic’s second in Asia after Tokyo, has officially opened. India represents one of the world’s most promising opportunities to bring the benefits of responsible AI to vastly more people and enterprises,” Irina Ghose, Managing Director of India, Anthropic, said in a statement on February 16.
Bengaluru’s AI pull: Talent, R&D and capital
Shrinivas Rao, FRICS, CEO, Vestian, said the city’s sustained demand from early-stage AI firms is rooted in its talent ecosystem and R&D orientation.
“Bengaluru accounts for nearly 26% of India’s AI workforce and is the world’s second-largest AI talent hub with close to six lakh AI/ML professionals,” he said, adding that the city hosts more than 16,000 startups and over 1,000 global capability centres (GCC) bases.
Ramita Arora, Executive Managing Director, Bengaluru and Head-Flex, Cushman and Wakefield, said that the concentration of multinational tech companies, research institutions and mature digital infrastructure has shifted India’s positioning from a back-office destination to a global innovation hub.
“AI innovation today is increasingly concentrated in a handful of cities, like Bengaluru, that are characterised by high levels of innovation, ample capital, and a highly educated workforce. This sustained demand is driven by the city’s unique digital infrastructure and the high ranking of the Indian Government’s AI Readiness Index, which actively supports growth and job creation,” she said.
Experts note that technology firms continue to account for nearly 40% of Grade A office take-up in Bengaluru.
“Within technology, we expect early-stage AI firms to increasingly establish operations in IT and start-up hubs such as Outer Ring Road, Whitefield and Koramangala, driven by high-quality supply, strong connectivity and proximity to residential catchments,” Vimal Nadar, National Director and Head of Research at Colliers India, said.
Which micro-markets are emerging as AI hubs in Bengaluru?
Arora said Outer Ring Road (ORR) and PBD-East are emerging as key AI-led corridors, with ORR alone accounting for nearly 89% of total AI leasing in 2025, up from 71% in 2024. ORR’s dominance is attributed to its sizable Grade-A stock and adjacency to technology and GCC clusters.
“ORR’s dominance is driven by its 35% share of the city’s Grade-A office stock and proximity to existing technology and GCC clusters, which creates strong talent adjacency benefits. Leasing has also seen traction in PBD-East, albeit at a comparatively smaller share. Preference for ORR reflects occupiers’ focus on mature, infrastructure-ready micro-markets, a trend likely to continue as AI firms prioritise rapid scaling and ecosystem access,” Rao said.
While AI-led leasing currently represents about 2.2% of overall office absorption in the city, experts say its strategic significance outweighs its numerical share. IT services still account for nearly half of total absorption, and GCCs contribute more than half, with technology and AI-driven operations forming a substantial portion within that segment.
Why AI firms prefer flexible office spaces over traditional long-term leases
A notable shift is AI firms’ preference for flexible, managed offices over traditional long-term leases. “Early-stage AI firms operate in high-uncertainty environments where headcount projections can change rapidly. These firms initially want to test the waters in a new territory before establishing a large-scale office,” Rao said.AI firms’ preference for flexible,
Experts say that flex spaces allow them to scale up or down without incurring long lock-in periods or heavy capital expenditures for full-scale offices. To add to this, the coworking ecosystem provides plug-and-play infrastructure, faster market entry, and access to collaborative communities, which are favourable for innovation-driven firms.
Nadar also noted that flex operators are well-positioned to support pilot operations and phased expansion strategies, enabling companies to scale in line with business milestones.
