New Delhi, April 1 – India’s data center (DC) capacity is projected to grow by around 30 per cent year-on-year in 2026, driven by strong demand and continued investor interest, according to a report released on Wednesday.
According to an analysis by CBRE, the estimates suggest an addition of nearly 500 MW of new supply this year, building on the record 440 MW capacity added in 2025 – a 160 per cent jump compared to the previous year.
The total domestic data center capacity stood at around 1,700 MW at the end of 2025, according to the report.
The sector has also attracted significant capital, with investment commitments reaching $56.4 billion in 2025, taking the cumulative total to $126 billion.
These commitments are expected to rise by around 45 per cent this year, potentially crossing $180 billion.
“The data center story in India is no longer just about potential, but about execution at scale,” said Anshuman Magazine, Chairman and CEO, CBRE, adding that foreign capital continues to play a dominant role in driving growth.
Major states such as Maharashtra, Telangana, Andhra Pradesh, Tamil Nadu and Uttar Pradesh are expected to lead investments, although activity is increasingly spreading to tier-II cities including Ahmedabad, Visakhapatnam, Patna and Bhopal due to rising demand for lower latency, 5G rollout and data localization, according to the report.
It further highlighted that Mumbai remains the largest hub – accounting for over 50 per cent of India’s operational data center inventory.
Mumbai, Chennai, Delhi-NCR and Bengaluru together contribute nearly 90 per cent of total capacity.
The report also noted that rising demand from artificial intelligence and cloud computing is increasing pressure on power infrastructure, prompting operators to focus on renewable energy sourcing.
India added a record 44.5 GW of renewable capacity in 2025.
According to CBRE, supportive government policies – including tax incentives, green capex support and regulatory easing – are expected to further accelerate investments and position India as a key data center hub in the Asia-Pacific region.
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.