According to a report by CBRE South Asia, Mumbai’s status as India’s data centre capital continued to strengthen, thanks to its role as a landing point for major submarine cables and its proximity to key internet exchange points. As of September 2025, the city accounts for 53 per cent of the country’s total operational data centre capacity of around 1,530 megawatts (MW). Chennai follows with a 20 per cent share, while Delhi-NCR and Bengaluru contribute 10 per cent and 7 per cent, respectively. Together, these four cities make up nearly 90 per cent of India’s overall capacity.
As per the report, since 2019, India has attracted close to $94 billion in data centre investment commitments, with Maharashtra, Telangana, and Tamil Nadu emerging as major hotspots. Around $30 billion of these commitments were made between January and September this year alone.
The report highlighted that India’s total data centre capacity crossed the 1.5 gigawatt mark for the first time in the first nine months of 2025, supported by 260 MW of new supply. Faster digital adoption, artificial intelligence (AI) led workloads, and favourable government policies continue to drive expansion. The study also highlighted India’s cost advantage in construction and electricity compared to markets like Singapore, China, and Japan, alongside a strong digital workforce, over 600,000 AI professionals, representing about 16 per cent of the global talent pool, a figure expected to double by 2027.
Further, demand is now increasingly coming from technology, banking, financial services and insurance (BFSI), e-commerce, and cloud players, with operators eyeing tier-2 cities as the next frontier of growth. With digitalisation and AI uptake accelerating, India is on track to become one of the world’s largest data centre markets.
