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Because most of over-seas fiber-optic cables land in Mumbai. Many companies have their head-offices in Mumbai and prefer data-centers close to their head-office.I don't understand why they are putting so many data centers in Mumbai i.e. near the coast as coastal areas are more susceptible to natural disasters such as tsunami and cyclones and ideal location in Maharashtra would be in and around Nagpur area
Pune a major city for IT development is also based near Mumbai.