India ranks 2nd in Asia Pacific data centre market with 1.6 GW operational capacity
New Delhi, May 27
India is the second-largest data centre market in the Asia-Pacific region with 1.6 GW of operational capacity and is also among the top three markets by development pipeline, with 3.1 GW under construction and planned, according to a new report on Wednesday.
The country is emerging as one of Asia Pacific's most significant growth markets for digital infrastructure, as accelerating AI adoption, hyperscale cloud expansion, and rising enterprise demand continue to reshape global data centre development patterns, according to Cushman & Wakefield.
India's data centre ecosystem is supported by a multi-market presence, with Mumbai, Hyderabad, Chennai, Delhi-NCR, Pune and Bengaluru included among the 107 global markets evaluated.
"The global data centre sector is moving into a more execution-driven phase of growth, where access to power, infrastructure readiness and delivery capability are becoming as important as demand itself," said Gautam Saraf, Executive Managing Director, Mumbai and New Business, Cushman & Wakefield.
India is well positioned within this shift given its combination of strong demand visibility, expanding development pipeline, and growing multi-market ecosystem across both primary and emerging locations.
"As capacity requirements continue to evolve, markets that can support scalable deployment, reliable infrastructure, and faster execution timelines are expected to see stronger long-term momentum," Saraf noted.
Mumbai anchors India's position as a primary market in Asia Pacific and continues to play a central role in regional expansion. The city is identified as one of the fastest-growing markets in the region and is expected to surpass 1 GW of operational capacity by the end of 2026.
Growth is increasingly being supported by secondary markets such as Hyderabad, Chennai, Delhi NCR and Pune, which are seeing rising levels of investment and development activity, said the report.
Hyderabad, in particular, is highlighted as the top secondary market in Asia Pacific and ninth globally, underscoring its growing prominence in the data centre landscape.
Bengaluru is positioned as a tertiary data centre market within the regional landscape.
India's growth is further reinforced by the scale of its long-term expansion pipeline. Over 10.5 GW of capacity remains at the land stage, reflecting strong future development potential as operators continue to secure sites and prepare for sustained demand, said the report.
— IANS
Reader Comments
But are we thinking about the environmental cost? Data centres consume massive amounts of electricity and water for cooling. In a country like India, where many villages still don't have reliable grid power, should we be pouring resources into this? I hope they're using renewable energy and water recycling systems. 🌍
As a tech professional who's worked in both the US and India, I can see why. India has the talent, government support, and growing internet penetration. But I worry about the concentration in just a few cities. Mumbai alone expecting 1 GW by 2026? That's a lot of eggs in one basket, especially with land prices and power challenges there.
Absolutely brilliant news! As someone who's been in IT for 20 years, I remember when India's data centre capacity was a fraction of this. Hyderabad being the top secondary market globally is no surprise - great infrastructure, reliable power, and Telangana's IT policy is very proactive. 👍 The pipeline of 10.5 GW at land stage shows investors are betting big on India's growth story.
I'm skeptical about the hype. Data centre growth sounds great on paper, but it often leads to real estate speculation and inflated electricity prices for local residents. Plus, the report says "access to power" is becoming critical - India still has power cuts in many places. Let's not get too carried away without addressing the fundamentals.
This is fantastic for India's economy. My cousin just got a job at a new data centre in Chennai. These aren't just big buildings - they create thousands of skilled jobs for engineers, technicians, and
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.