India's Data Centre Capacity Surpasses 1.5 GW, Mumbai Leads with 53% Share: CBRE
India's total data centre capacity has crossed 1.5 GW, with Mumbai accounting for 53% of the operational stock. The report by CBRE highlights rapid digitalisation, AI adoption, and government support as key drivers of this growth.
Data CentreMumbaiDigitalisationAi AdoptionGovernment SupportReal Estate MumbaiNov 12, 2025
The report, titled India’s Data Centre Market in a New Era, highlighted that India added around 260 MW of new DC capacity during the first nine months of 2025, driven by rapid digitalisation, AI adoption, and government-led policy support.
The country’s data centre investment commitments have reached $94 billion, with $30 billion pledged in the first nine months of 2025 alone. Telangana, Maharashtra, and Tamil Nadu have emerged as the top destinations for new data centre investments, the report said.
After Mumbai, Chennai (20%), Delhi-NCR (10%), and Bengaluru (7%) follow as key markets. Together, the four cities account for nearly 90% of India’s total data centre capacity, CBRE said.
The report said that India’s data centre capacity has seen consistent year-on-year growth, rising from 575 MW in 2021 to 1,529 MW by the first nine months of 2025. Annual supply additions have also accelerated during this period, from 54 MW in 2021 to 262 MW in 9M 2025, reflecting strong expansion driven by rising digitalisation, AI adoption, and cloud demand.
“India’s Data Centre capacity has seen significant growth in the last four to five years, mirroring the country's rapid digital transformation,” said Anshuman Magazine, chairman and CEO, India, South-East Asia, Middle East & Africa, CBRE. “This is being supported by government policies and data localisation norms, positioning India as a key hub for global as well as domestic investors.”
CBRE said that India offers one of the most cost-competitive DC environments globally, supported by relatively lower construction and electricity costs as compared to markets such as Singapore, China, and Japan. “It also has a large pool of digital and AI talent, accounting for nearly 16% of the global AI workforce with over 600,000 professionals. This is expected to double by 2027.”
Ram Chandnani, managing director, leasing, CBRE India, said that AI is already reshaping the country’s data centre landscape.
“Generative AI holds significant potential for the country's economy and is poised to unleash the next wave of DC demand. Moreover, AI is also impacting global capability centres, helping them focus on automation, talent transformation, and cost optimisation,” he said.
Looking ahead, CBRE said demand for data centre space is expected to be led by technology, BFSI, e-commerce, and cloud service companies. Developers are also likely to expand into tier-2 markets, as rising data consumption drives the need for regional facilities.
“With digitalisation and AI adoption expected to only go up, India is likely to emerge as one of the biggest DC markets globally,” Magazine said.
Frequently Asked Questions
What is the current total data centre capacity in India?
India’s total data centre capacity has surpassed 1.5 gigawatts (GW) as of September 2025.
Which city leads in data centre capacity in India?
Mumbai leads with 53% of the operational stock, accounting for about 1,530 megawatts (MW) of the total capacity.
What are the key drivers of data centre growth in India?
Rapid digitalisation, AI adoption, and government-led policy support are the key drivers of data centre growth in India.
How much has India’s data centre capacity grown since 2021?
India’s data centre capacity has grown from 575 MW in 2021 to 1,529 MW by the first nine months of 2025.
What role does AI play in India’s data centre market?
AI is reshaping the data centre landscape in India, with generative AI holding significant potential for the country's economy and poised to drive the next wave of data centre demand.
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