New Delhi, April 1 India's data center segment will continue to attract interest from investors and may see an investment commitment of more than USD 54 billion this calendar year, according to CBRE.
Real estate consultant CBRE released a report titled 'India Alternate Sectors Outlook 2026', stating that India's total data center stock across major cities is projected to increase by 30 per cent year-on-year in 2026 with an estimated 500 MW of new supply addition.
Stock portfolio management
In 2025, the total data center capacity in the country reached the 1,700 MW mark, driven by a record 440 MW of new supply addition.
The report highlighted that the asset class witnessed investment commitments of USD 56.4 billion in 2025 alone, bringing the cumulative total to USD 126 billion.
"This year, these commitments are projected to rise by around 45 per cent, potentially surpassing USD 180 billion," CBRE said.
Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East & Africa, CBRE, said the data center story in India is no longer about potential but about execution at scale.
"The sector's resilience and attractive return potential are establishing it as a primary focus for investors, with foreign capital playing a dominant role. This interest is supported by a robust regulatory framework that continues to enhance transparency and streamline credit access," he added.
The institutional momentum is expected to drive a significant upswing in deployments, positioning India as one of the fastest growing and most dynamic data center markets in the Asia-Pacific region, Magazine said.
While Telangana, Maharashtra, Andhra Pradesh, Tamil Nadu, and Uttar Pradesh are likely to lead these capital inflows, the investment landscape is beginning to diversify further.
Driven by the requirements for lower latency, 5G proliferation, and data localization, the CBRE said that data center operators are moving beyond traditional metro-centric models to direct sustained investment towards tier-II cities such as Ahmedabad, Visakhapatnam, Patna, and Bhopal, amongst others.
The sector is also garnering rising interest from investors across the Asia-Pacific (APAC) region.
According to CBRE's 2026 Asia Pacific Investor Intentions Survey, data centers have emerged as the asset class where investors in the region expect the highest price appreciation in 2026.
The report highlighted that Mumbai alone accounted for over 50 per cent of India's operational data center inventory, as of 2025-end, anchored by its superior subsea connectivity and grid reliability.
Mumbai, Chennai, Delhi-NCR, and Bengaluru account for nearly 90 per cent of the country's established tier-I data center capacity.
Ram Chandnani, Managing Director, Leasing, CBRE India, said, "Rapidly scaling AI and cloud infrastructure is placing unprecedented strain on power grids in high-density data center hubs."
Consequently, he said renewable energy procurement has become a structural pillar of supply-side strategy.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.