A recent report by CBRE, a real estate consulting firm, has found that Mumbai has cornered 53 percent of India’s total data center capacity of around 1530 MW this year. This is mainly due to its proximity to global internet exchange points and a key entry location for worldwide submarine cables.
According to the report titled, India’s Data Centre Market in a New Era, by CBRE South Asia Pvt. Ltd., Chennai, Delhi-NCR, and Bengaluru follow Mumbai, with shares of 20 percent, 10 percent, and 7 percent, respectively. The four cities cumulatively account for nearly 90 percent of the country’s total DC capacity.
According to the report, the DC capacity crossed ~1.5 GW for the first time during 9M 2025 i.e this September. Supply of ~260 MW has been added between January and September this year. The growth is mainly driven by rapid digitalisation, favorable government regulations, and increasing corporate investments in Artificial Intelligence (AI).
“Rapid digitalization 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 localization norms, positioning India as a key hub for global as well as domestic investors,” says Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE. “Looking ahead, as enterprises accelerate their digital transformation journeys, India is set to emerge as one of the most critical data center markets in the world,” he added.
The report says that 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. It also has a large pool of digital and AI talent, accounting for nearly 16 percent of the global AI workforce with over 600,000 professionals. This is expected to double by 2027.
The CBRE report said that India has attracted nearly US$ 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 US$ 30 billion during the January-September 2025 period.
“AI has been contributing significantly to India’s economic growth ranging from advanced research and development to data solutions across industries. Generative AI holds significant potential for the country’s economy and is poised to unleash the next wave of DC demand,” said Ram Chandnani, Managing Director, Leasing, CBRE India. “Moreover, AI is also impacting global capability centers helping them focus on automation, talent transformation, and cost optimization. More GCCs are leveraging AI to improve efficiency, enhance service delivery, and drive innovation.”
In the coming months, the demand for DC facilities is likely to be driven by technology firms, BFSI companies, e-commerce and cloud services. Moreover, DC operators are expected to expand their presence in tier-2 markets, driven by rising data consumption in smaller cities.