India’s financial capital Mumbai’s position as a gateway for global submarine cables and its proximity to major internet exchange points have made it the country’s most preferred data centre hub.
Mumbai continues to dominate the data centre (DC) landscape, accounting for 53% of the country’s total operational capacity of around 1,530 MW as of September 2025, according to CBRE South Asia.
Key cities including Chennai, Delhi-NCR, and Bengaluru follow Mumbai with shares of 20%, 10%, and 7%, respectively. Together, these four cities account for nearly 90% of India’s total data centre capacity.
Since 2019, India has attracted data centre investment commitments worth nearly $94 billion, with Telangana, Maharashtra, and Tamil Nadu emerging as leading destinations. Investment commitments worth about $30 billion were made during the January-September 2025 period alone.
“Rapid digitalisation due to rising internet penetration, cloud adoption, and the emergence of AI and Internet of Things (IoT), has taken the need for strong data infrastructure to new heights. This is being supported by government policies and data localisation norms, positioning India as a key hub for global as well as domestic investors,” said Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE.
According to him, as enterprises accelerate their digital transformation journeys, India is set to emerge as one of the most critical data centre markets in the world.
“Artificial intelligence (AI) has been contributing significantly to India's economic growth ranging from advanced research and development to data solutions across industries. Generative AI holds significant potential for the country's economy and is poised to unleash the next wave of DC demand,” said Ram Chandnani, MD, Leasing, CBRE India.
He is of the view that AI is also impacting global capability centres helping them focus on automation, talent transformation, and cost optimisation. More GCCs are leveraging AI to improve efficiency, enhance service delivery, and drive innovation.
During the first nine months of 2025, India’s total DC capacity surpassed 1.5 GW for the first time, with about 260 MW of new supply added between January and September. The expansion has been driven by rapid digitalisation, supportive government policies, and growing corporate investment in Artificial Intelligence (AI).
The study highlighted that India offers one of the most cost-competitive DC environments globally, aided by lower construction and electricity costs compared to markets such as Singapore, China, and Japan. The country also has a deep digital and AI talent base, accounting for about 16% of the global AI workforce, or over 600,000 professionals, a number expected to double by 2027.
In the months ahead, demand for DC facilities is expected to be driven by technology, BFSI, e-commerce, and cloud firms, while operators are likely to expand into tier-2 cities amid rising data consumption. Magazine added that with digitalisation and AI adoption set to accelerate, India is positioned to become one of the world’s largest data centre markets.
Mumbai continues to dominate the data centre (DC) landscape, accounting for 53% of the country’s total operational capacity of around 1,530 MW as of September 2025, according to CBRE South Asia.
Key cities including Chennai, Delhi-NCR, and Bengaluru follow Mumbai with shares of 20%, 10%, and 7%, respectively. Together, these four cities account for nearly 90% of India’s total data centre capacity.
Since 2019, India has attracted data centre investment commitments worth nearly $94 billion, with Telangana, Maharashtra, and Tamil Nadu emerging as leading destinations. Investment commitments worth about $30 billion were made during the January-September 2025 period alone.
“Rapid digitalisation due to rising internet penetration, cloud adoption, and the emergence of AI and Internet of Things (IoT), has taken the need for strong data infrastructure to new heights. This is being supported by government policies and data localisation norms, positioning India as a key hub for global as well as domestic investors,” said Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE.
According to him, as enterprises accelerate their digital transformation journeys, India is set to emerge as one of the most critical data centre markets in the world.
“Artificial intelligence (AI) has been contributing significantly to India's economic growth ranging from advanced research and development to data solutions across industries. Generative AI holds significant potential for the country's economy and is poised to unleash the next wave of DC demand,” said Ram Chandnani, MD, Leasing, CBRE India.
He is of the view that AI is also impacting global capability centres helping them focus on automation, talent transformation, and cost optimisation. More GCCs are leveraging AI to improve efficiency, enhance service delivery, and drive innovation.
During the first nine months of 2025, India’s total DC capacity surpassed 1.5 GW for the first time, with about 260 MW of new supply added between January and September. The expansion has been driven by rapid digitalisation, supportive government policies, and growing corporate investment in Artificial Intelligence (AI).
The study highlighted that India offers one of the most cost-competitive DC environments globally, aided by lower construction and electricity costs compared to markets such as Singapore, China, and Japan. The country also has a deep digital and AI talent base, accounting for about 16% of the global AI workforce, or over 600,000 professionals, a number expected to double by 2027.
In the months ahead, demand for DC facilities is expected to be driven by technology, BFSI, e-commerce, and cloud firms, while operators are likely to expand into tier-2 cities amid rising data consumption. Magazine added that with digitalisation and AI adoption set to accelerate, India is positioned to become one of the world’s largest data centre markets.
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