India’s digital engine is running faster than ever. From cloud computing to artificial intelligence, every byte of data generated across the country needs a place to live, and that place is expanding at record speed. According to a new report by CBRE South Asia, India’s total data centre (DC) capacity has crossed the 1.5 gigawatt mark for the first time, marking a major milestone in the country’s digital journey.
Mumbai leads this charge, holding an impressive 53% share of India’s total 1,530 MW capacity as of September 2025. Its dominance isn’t accidental, the city’s coastal advantage makes it the first landing point for global submarine cables and home to major internet exchange points, giving it direct access to the world’s data arteries.
Trailing Mumbai are Chennai, Delhi-NCR, and Bengaluru with shares of 20%, 10%, and 7% respectively. Together, these four cities account for nearly 90% of India’s total data centre capacity, forming the backbone of the country’s rapidly growing digital ecosystem.
Powering the AI and Cloud Wave
The growth story of India’s data centre market is deeply tied to its digital transformation. In just the first nine months of 2025, around 260 MW of new capacity was added, a clear reflection of rising data demand. Driving this surge are three forces: widespread digitalisation, government-friendly policies, and an explosion of corporate investment in artificial intelligence (AI).
Anshuman Magazine, Chairman and CEO of CBRE for India, South-East Asia, the Middle East, and Africa, believes this momentum will only strengthen. “Rapid digitalisation driven by rising internet penetration, cloud adoption, and the emergence of AI and IoT has taken the need for strong data infrastructure to new heights,” he said. “Supported by policy and localisation norms, India is positioning itself as a global hub for both domestic and international investors.”
He adds that as more companies speed up their digital transformation, India will emerge as one of the most critical data centre markets in the world.
The Investment Magnet
Since 2019, India has attracted close to USD 94 billion in data centre investment commitments, with states like Telangana, Maharashtra, and Tamil Nadu leading the pack. Remarkably, around USD 30 billion of that came just in the first nine months of 2025, showing the depth of investor confidence.
The appeal lies not just in the country’s growing data demand but also in its cost advantage. Compared to other major Asian markets such as Singapore, China, and Japan, India offers lower construction and electricity costs, two of the biggest expenses in running data centres. Add to that a vast and skilled digital workforce, and the equation becomes even more compelling.
India already accounts for 16% of the global AI talent pool, with over 600,000 professionals. This number is expected to double by 2027, creating a strong talent pipeline to support the next wave of digital infrastructure growth.
AI: The Next Frontier
Ram Chandnani, Managing Director, Leasing, CBRE India, points out that AI is now playing a defining role in shaping the country’s data centre future. “AI is contributing significantly to India’s economic growth, from research and development to data-driven solutions across industries,” he said. “Generative AI, in particular, is poised to unleash the next wave of demand for data centres.”
He also noted how global capability centres (GCCs), offshore units set up by multinational firms are embracing AI to automate processes, enhance efficiency, and innovate faster. This, in turn, is driving the need for more robust and localised data storage capacity.
Expanding Beyond the Metros
While the big four cities dominate today, CBRE’s report suggests that the next phase of growth will extend to tier-2 markets. With data consumption soaring in smaller cities, data centre operators are preparing to expand their footprint beyond metro hubs.
As Anshuman Magazine summed up, “With digitalisation and AI adoption only accelerating, India is on track to become one of the biggest data centre markets in the world.”
From the tech corridors of Bengaluru to the coastal data hubs of Mumbai and Chennai, India’s digital infrastructure story is no longer one of potential, it’s one of momentum. And in the age of AI, that momentum is data-powered and future-bound.
