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India's Data Center Boom: 1.5 GW Milestone Amid AI Investment Surge

India's data center industry has reached a major milestone by crossing 1.5 gigawatts of capacity. The country added 260 megawatts just in the first nine months of 2025 alone. Mumbai leads the pack with over half of the nation's total data center capacity. This explosive growth is being driven by artificial intelligence adoption and massive corporate investments in digital infrastructure.

Key Points: India Data Center Capacity Crosses 1.5 GW in 2025 Report

  • India added 260 MW data center capacity during first nine months of 2025
  • Mumbai dominates with 53% share due to submarine cable connectivity
  • AI adoption and government policies driving massive infrastructure growth
  • India attracted $94 billion in DC investments since 2019 commitment
2 min read

India's DC stock surpasses 1.5 GW; 260 MW added during 9M 2025: Report

India's data center capacity hits 1.5 GW with 260 MW added in 9M 2025. Mumbai leads with 53% share as AI and digitalization drive unprecedented growth.

"Rapid digitalisation due to rising Internet penetration, cloud adoption, and the emergence of AI and IoT, has taken the need for strong data infrastructure to new heights - Anshuman Magazine, CBRE"

New Delhi, Nov 12

India's data centre (DC) capacity crossed 1.5 gigawatt (GW) for the first time during the first nine months this year (9M 2025), a report said on Wednesday.

A supply of 260 MW 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)," CBRE South Asia, a real estate consulting firm, stated in its report.

According to the report, Mumbai leads the country's total DC capacity with a 53 per cent share of the total, around 1,530 MW at the end of September this year.

This is mainly due to its proximity to global internet exchange points and a key entry location for worldwide submarine cables.

The report added that Chennai, Delhi-NCR, and Bengaluru follow Mumbai, with shares of 20 per cent, 10 per cent, and 7 per cent, respectively. The four cities cumulatively account for nearly 90 per cent of the country's total DC capacity.

India's Data Centre capacity has seen significant growth in the last four to five years, mirroring the country's rapid digital transformation, said Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE.

"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," he added.

This is being supported by government policies and data localisation norms, positioning India as a key hub for global as well as domestic investors, the Magazine said further.

As per the report, 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.

The nation 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 highlighted that India has attracted nearly $94 billion in DC investment commitments since 2019, with Telangana, Maharashtra, and Tamil Nadu emerging as the top three destinations.

The country's DC sector witnessed investment commitments worth around $30 billion during the January-September 2025 period.

- IANS

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Reader Comments

R
Rohit P
Mumbai dominating with 53% share makes sense given its infrastructure advantages. But I hope other cities get more focus too - we need to distribute this growth across the country for balanced regional development.
A
Anjali F
$94 billion in investments since 2019 is massive! This shows global confidence in India's digital future. The cost competitiveness compared to Singapore and China is our biggest advantage. More jobs and economic growth ahead! 💪
M
Michael C
While the growth numbers are impressive, I'm concerned about the environmental impact. Data centers consume enormous amounts of electricity. Hope the government ensures renewable energy integration and proper environmental safeguards.
K
Karthik V
The AI workforce numbers are exciting! As someone working in tech, I can see how data centers are becoming the backbone of our digital economy. Government policies supporting this growth deserve appreciation. Jai Hind! 🙏
S
Sarah B
Great to see India becoming a data center powerhouse! The concentration in just 4 cities (90% capacity) is concerning though. Hope tier-2 cities also get infrastructure development to spread the benefits more evenly across the country.

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