India Data Centre Capacity Hits 1,789 MW; AI, Cloud Demand Drives Growth

CW Bureau ·

India’s data centre sector is witnessing strong growth, driven by hyperscale cloud adoption, artificial intelligence (AI) deployments and enterprise digital transformation.

According to Cushman & Wakefield’s India Data Centre H1 2026 Update, the country’s top seven data centre markets added 178 MW of capacity during the first half of 2026. Total operational capacity reached 1,789 MW.

Nearly 3.9 GW supply in pipeline

The market is expected to receive another 3,860 MW of capacity by 2030. This includes 509 MW under construction and 3,351 MW in the planning stage.

The sector now spans 147 data centres operated by 33 providers across India’s leading markets. Co-location vacancy stood at 14.9% in H1 2026 despite continued capacity additions.

APAC investment gathers pace

India’s expansion is part of a broader transformation across the Asia Pacific region. Cushman & Wakefield’s Asia Pacific Data Centre Investment Landscape 2026 projects total APAC data centre capacity to increase 2.7 times by 2030.

The region has 15,135 MW of operational capacity and a development pipeline of 26,455 MW. The growth is expected to outpace the Americas and EMEA.

$280 billion investment need

The APAC data centre sector is expected to require more than $280 billion in capital expenditure through 2030. Operational asset values are projected to exceed $950 billion by the end of the decade.

Japan, Malaysia, Australia, India and Indonesia are expected to account for nearly 77% of APAC’s projected capital expenditure. This represents investment opportunities of about $215 billion.

India among key investment markets

India is projected to require $29.9 billion in development capital through 2030. It remains one of APAC’s largest data centre investment markets.

India is also among the region’s more underpenetrated digital infrastructure markets. There are approximately 825,333 people for every MW of operational data centre capacity.

Mumbai leads upcoming supply

Mumbai continues to anchor India’s data centre ecosystem, with 890 MW of operational capacity and the country’s largest upcoming supply pipeline of 1,726 MW.

Hyderabad has 151 MW of operational capacity and 710 MW of upcoming supply. The market is being supported by hyperscaler investments and growing demand for AI-enabled infrastructure.

Chennai strengthens secondary market

Chennai has 214 MW of operational capacity and 368 MW of upcoming supply. Strong subsea connectivity continues to support operator interest in the city.

Delhi NCR has 183 MW of operational capacity and 387 MW of future supply, while Pune has 133 MW operational and 258 MW upcoming. Bengaluru has 162 MW operational and 100 MW future supply.

Eastern market sees activity

Kolkata has 22 MW of operational capacity and 84 MW of upcoming supply, reflecting increasing operator activity in eastern India.

“With nearly 3.9 GW of additional capacity expected across the country’s leading markets by 2030, this deeper ecosystem will be critical in supporting the next phase of cloud adoption, AI deployment and data-driven growth across the economy,” Cushman & Wakefield, Executive Managing Director, Mumbai & New Business, Gautam Saraf, said.

“The significance of India’s data centre market today lies not just in the scale of capacity being added, but in the confidence that this level of investment reflects,” he said.