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India's data centre sector continues its rapid growth, adding 260 MW to reach 1.5 GW by September. Mumbai dominates the landscape with 53 per cent of total capacity, driven by digitalisation, AI investments, and supportive government policies. Since 2019, the country has attracted nearly USD 94 billion in investments, with Telangana, Maharashtra, and Tamil Nadu leading. Major corporations, including the Tata Group, are expanding capacity. Cost advantages, global capability centres, and Mumbai's strategic location near internet hubs and submarine cables further boost India's appeal as a data centre destination.
India's data centre capacity has grown by 260 MW, reaching a total of 1.5 GW by the end of September, according to property consultant CBRE. With rising concerns about resource-intensive data centres near major urban areas, the report highlights that over half of the country's capacity, 53 per cent, is concentrated in Mumbai, the financial capital. Advertisement
The expansion is driven by rapid digitalisation, supportive government regulations, and increasing corporate investments in artificial intelligence. Anshuman Magazine, CBRE's chairman and chief executive for India, South East Asia, Middle East, and Africa, said that government policies, including a focus on data localisation, are encouraging investors to expand their presence in India.
Since 2019, India has drawn nearly USD 94 billion in data centre investment commitments, with Telangana, Maharashtra, and Tamil Nadu emerging as the leading destinations. In the January-September period of 2025 alone, investment commitments worth USD 30 billion were announced for building new data centres.
Major corporate groups, including the Tata Group, have recently announced plans to add capacity, with Tata aiming to set up 1 GW on its own. The country provides one of the most cost-competitive environments for data centres globally, benefiting from lower construction and electricity costs compared to markets such as Singapore, China, and Japan.
Global capability centres (GCCs) present in India also contribute to the demand, as these centres require substantial computing power to operate their AI workloads. Mumbai's appeal is further enhanced by its proximity to global internet exchange points and its role as a key entry point for international submarine cables.
Chennai holds a fifth of the country's total capacity, ranking second, while Delhi NCR accounts for 10 per cent and Bengaluru 7 per cent.
Source PTI
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