According to a report by CBRE, India’s data centre (DC) capacity is expected to cross 1,800 megawatts (MW) by the end of 2026, with the country likely to record additional capacity of 850 MW during 2024-26.
The report noted that India currently had the highest DC capacity of around 950 MW in the Asia-Pacific (APAC) region (excluding China). After India, Japan recorded the second-highest DC capacity with 892 MW, followed by Australia at 773 MW, Singapore at 718 MW, Hong Kong at 613 MW and South Korea at 531 MW.
As per the report, the sector has witnessed significant investments from global operators, real estate developers, and private equity funds eager to tap into the country’s thriving market. Moreover, India secured investment commitments exceeding $40 billion from both global and domestic investors between 2018 to 2023.
The report added that global investors retain a strong interest in the market, with many exploring partnerships and joint ventures with local operators. Additionally, merger and acquisition (M&A) activity among operators is anticipated to increase in the coming years to mitigate market fragmentation.
The report further added that while Mumbai and Chennai account for around 68 per cent of the total DC stock in India, several Tier 2 cities such as Kochi, Jaipur, Ahmedabad, Lucknow, Patna, and Visakhapatnam are emerging as DC markets.
Furthermore, the report stated that India’s appeal to global hyperscalers for expansion is evident, with many opting for customised build-to-suit (BTS) facilities. Meanwhile, in 2023, more than 85 per cent of the $27 billion committed investment targeted the development of hyperscale facilities.
