Mumbai Dominates India's Data Center Market with 53% Share as Total Capacity Reaches 1.5 GW
Mumbai has solidified its position as India’s leading data center hub, accounting for 53% of the country’s total operational capacity of about 1,530 MW as of September 2025. The city’s strategic location and supportive infrastructure have made it a preferred choice for global and domestic investors.
Data CenterMumbaiDigitalizationAiInvestmentReal Estate MumbaiNov 12, 2025
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 center capacity.
Since 2019, India has attracted data center 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 digitalization due to rising internet penetration, cloud adoption, and the emergence of AI and IoT has taken the need for strong data infrastructure to new heights. This is being supported by government policies and data localization norms, positioning India as a key hub for global and 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 center 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 data center demand, said Ram Chandnani, MD, Leasing, CBRE India.
AI is also impacting global capability centers, helping them focus on automation, talent transformation, and cost optimization. More GCCs are leveraging AI to improve efficiency, enhance service delivery, and drive innovation.
During the first nine months of 2025, India’s total data center 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 digitalization, supportive government policies, and growing corporate investment in Artificial Intelligence (AI).
The study highlighted that India offers one of the most cost-competitive data center 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 data center 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 digitalization and AI adoption set to accelerate, India is positioned to become one of the world’s largest data center markets.
Frequently Asked Questions
What percentage of India's total data center capacity is held by Mumbai?
Mumbai holds 53% of India's total data center capacity as of September 2025.
Which cities follow Mumbai in terms of data center capacity?
Chennai, Delhi-NCR, and Bengaluru follow Mumbai with shares of 20%, 10%, and 7%, respectively.
How much has India attracted in data center investment commitments since 2019?
India has attracted data center investment commitments worth nearly $94 billion since 2019.
What factors are driving the growth of data centers in India?
Rapid digitalization, rising internet penetration, cloud adoption, the emergence of AI and IoT, supportive government policies, and data localization norms are driving the growth of data centers in India.
What is the expected impact of AI on India's data center market?
AI is expected to drive significant demand for data center facilities, improve efficiency, enhance service delivery, and drive innovation in various industries.
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