India Ranks 2nd in Asia Pacific Data Centre Market Driven by Rapid Digital Growth
India has rapidly emerged as a global leader in the data centre industry and now stands as the second-largest data centre market in the Asia-Pacific region. According to a recent report by Cushman & Wakefield, India boasts 1.6 gigawatts (GW) of operational data centre capacity, with an additional 3.1 GW under construction or planned, placing it among the top three countries by development pipeline in the region.
Key Drivers Behind India’s Data Centre Market Growth
The explosive growth of the Indian data centre market is driven by several converging factors, notably accelerating adoption of artificial intelligence (AI), expansion of hyperscale cloud services, and increasing enterprise demand for digital infrastructure. Together, these forces are reshaping the global data centre landscape and positioning India at the forefront of digital infrastructure development.
India’s strong multi-market ecosystem supports this growth, with major cities such as Mumbai, Hyderabad, Chennai, Delhi-NCR, Pune, and Bengaluru playing pivotal roles in expanding capacity and attracting investment.
Major Data Centre Markets in India
- Mumbai: Recognized as India’s primary data centre market and a major hub in the Asia-Pacific region, Mumbai is expected to exceed 1 GW of operational capacity by the end of 2026. It serves as a central node for regional expansion and investment.
- Hyderabad: Highlighted as the top secondary market in Asia Pacific and ninth globally, Hyderabad is rapidly gaining importance as a key destination for data centre development.
- Chennai, Delhi-NCR, Pune: These secondary markets have seen increasing levels of investment activity, complementing the primary hubs and contributing significantly to the country’s data centre landscape.
- Bengaluru: Positioned as a tertiary market, Bengaluru continues to develop its data centre infrastructure, supporting the broader ecosystem.
The Future Outlook and Development Potential
Executive Managing Director at Cushman & Wakefield, Gautam Saraf, noted that the global data centre sector is moving into a more execution-focused phase where factors like power availability, infrastructure readiness, and delivery capability are paramount alongside demand. India is well-positioned to capitalize on this trend due to its strong demand trajectory, extensive development pipeline, and expanding multi-market presence.
Currently, over 10.5 GW of capacity remains at the land acquisition stage in India, signaling robust future development potential. Operators continue to secure sites and prepare for sustained demand, reinforcing India’s long-term expansion prospects within the global digital infrastructure arena.
Conclusion
India’s elevation to the second position in the Asia Pacific data centre market highlights its vital role in the region’s digital transformation. Driven by AI adoption, cloud expansion, and a robust multi-city ecosystem, India is poised for sustained growth in the data infrastructure sector. With ongoing investments and development in primary and secondary markets, India’s data centre market is a shining example of the country’s accelerating digital economy and strategic importance in the global technology landscape.
