This is mainly due to its proximity to global lnternet exchange points and a key entry location for worldwide submarine cables.
According to the report, the DC capacity crossed 1.5 gigawatts for the first time during the first nine months of 2025. A supply of 260 megawatts has been added between January and September this year. The growth is mainly driven by rapid digitalisation, favourable government regulations and increasing corporate investments in Artificial Intelligence (AI).
According to Anshuman Magazine, Chairman & CEO CBRE, India’s Data Centre capacity has seen significant growth in the last four-to-five years, mirroring the country’s rapid digital transformation.
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.
“Looking ahead, as enterprises accelerate their digital transformation journeys, India is set to emerge as one of the most critical data centre markets in the world,” he said.
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 per cent of the global AI workforce with over 600,000 professionals. This is expected to double by 2027.
The CBRE report said that India had attracted nearly USD 94 billion in DC investment commitments since 2019, with Telangana, Maharashtra, and Tamil Nadu emerging as the top three destinations.
The report said that Chennai, Delhi-NCR and Bengaluru follow Mumbai, led with shares of 20 per cent, 10 per cent and 7 per cent, respectively. The four cities cumulatively accounted for nearly 90 per cent of the country’s total DC capacity, it added.
The country’s DC sector witnessed investment commitments worth around USD 30 billion during the January-September 2025 period.
“In the coming months, the demand for DC facilities is likely to be driven by technology firms, banking, financial services and insurance companies, e-commerce and cloud services. Moreover, DC operators are expected to expand their presence in tier-2 markets, driven by rising data consumption in smaller cities,” the report said.
