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Mumbai has emerged as India's top data centre hub, accounting for 53 per cent of the country's total data centre capacity of about 1,530 megawatts (MW) as of September 2025, according to a report by CBRE. The city's dominance is linked to its proximity to global internet exchange points and submarine cable landing stations that connect India with the rest of the world.
The report, titled 'India's Data Centre Market in a New Era', stated that other major contributors include Chennai with 20 per cent, Delhi-NCR with 10 per cent, and Bengaluru with 7 per cent of the total capacity. Together, these four cities account for nearly 90 per cent of India's data centre infrastructure. The country's data centre capacity crossed the 1.5-gigawatt mark for the first time between January and September 2025. Around 260 MW of new supply was added during this period, driven by rapid digitalisation, supportive government policies, and increasing corporate investments in Artificial Intelligence (AI). Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE, said India's data centre market has grown sharply in the last few years. "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," he said. India has also become one of the most cost-competitive data centre destinations globally, helped by lower construction and electricity costs compared to markets like Singapore, China, and Japan. The country's growing talent pool is another strength. It currently accounts for around 16 per cent of the world's AI workforce, with over 600,000 professionals, a number expected to double by 2027. According to the CBRE report, India has attracted investment commitments worth nearly USD 94 billion in data centre projects since 2019. Telangana, Maharashtra, and Tamil Nadu have emerged as the leading destinations for these investments. During January-September 2025 alone, new commitments worth about USD 30 billion were recorded. Ram Chandnani, Managing Director, Leasing, CBRE India, said that AI continues to fuel India's economic growth. "Generative AI holds significant potential for the country's economy and is poised to unleash the next wave of data centre demand. More global capability centres are leveraging AI to improve efficiency, enhance service delivery, and drive innovation," he said. Magazine added that the sector's prospects remain strong. "With digitalisation and AI adoption expected to only go up, India is likely to emerge as one of the biggest data centre markets globally," he said. (ANI)
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