New Delhi, April 1 (IANS). India’s data center capacity is expected to grow by 30 percent annually in 2026. The reason for this is the strong demand and continued interest of investors in this sector. This information was given in the report released on Wednesday.
Nearly 500 MW of new data center capacity is projected to be added this year, up from the record 440 MW capacity added in 2025, according to CBRE’s analysis.
According to the report, the total domestic data center capacity by the end of 2025 was about 1,700 MW.
The sector has also attracted new capital and secured investment commitments of $56.4 billion through 2025, taking total investment commitments to $126 billion.
These commitments are expected to increase by about 45 percent this year, bringing the amount to potentially more than $180 billion.
“The data center story in India is no longer about potential, but about execution at scale,” said Anshuman Magazine, Chairman and CEO, CBRE. He further said that foreign capital continues to play a major role in accelerating development.
According to the report, major states like Maharashtra, Telangana, Andhra Pradesh, Tamil Nadu and Uttar Pradesh will lead the investment, although activity is also spreading rapidly in tier-II cities including Ahmedabad, Visakhapatnam, Patna and Bhopal due to increased demand for low latency, 5G rollout and data localisation.
The report also notes that Mumbai remains the largest hub – more than 50 percent of India’s total operational data centers are located in Mumbai.
Mumbai, Chennai, Delhi-NCR and Bengaluru together contribute about 90 per cent of the total capacity.
The report also notes that increasing demand from AI and cloud computing is putting increasing pressure on electricity infrastructure, leading operators to focus on renewable energy sources.
India to add record 44.5 GW of renewable energy capacity in 2025
According to CBRE, supportive government policies including tax incentives, green capital expenditure support and regulatory simplification are expected to further accelerate investment and establish India as a leading data center hub in the Asia-Pacific region.
–IANS
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