India’s fast-growing digital economy has pushed the nation’s data centre capacity past 1.5 gigawatts (GW) for the first time, with Mumbai accounting for 53 per cent of the total, according to a new report by global consultancy CBRE. The milestone marks India’s emergence as a leading global data hub, powered by rapid digitalisation, AI adoption, and favourable government policies.
The CBRE study, India’s Data Centre Market in a New Era, reveals that around 260 megawatts (MW) of new capacity was added in the first nine months of 2025. Telangana, Maharashtra, and Tamil Nadu have become the most sought-after destinations for new investments, while Mumbai’s dominance stems from its proximity to global internet exchange points and undersea cable landings vital infrastructure for global cloud connectivity.
Following Mumbai, Chennai, Delhi-NCR, and Bengaluru collectively contribute another 37 per cent of capacity, cementing a four-city network that accounts for nearly 90 per cent of the country’s operational data centres. This cluster effect, experts say, is creating regional digital corridors that could soon extend to tier-2 cities such as Pune, Ahmedabad, and Hyderabad, driven by localised demand for cloud services and AI-led applications.
CBRE estimates that total investment commitments in India’s data centre sector have reached USD 94 billion, with USD 30 billion pledged in just the first three quarters of 2025. Analysts believe that sustained policy support including incentives for renewable-powered facilities and data localisation mandates will further accelerate this growth, while aligning with India’s broader sustainability and energy efficiency goals.
An industry official noted that AI-driven demand is already reshaping facility design and energy consumption patterns. “Generative AI and automation are redefining how data centres operate. Operators are now integrating green cooling systems, energy-efficient layouts, and hybrid power sourcing to balance performance with sustainability,” the official said.
India’s competitive advantage lies not only in lower construction and electricity costs but also in its large pool of digital and AI talent nearly 16 per cent of the global AI workforce. This talent base, projected to double by 2027, positions India as a long-term destination for cloud infrastructure expansion.
As digitalisation deepens across sectors like finance, e-commerce, and manufacturing, India’s urban future will depend on how efficiently these data centres integrate with city planning ensuring resilient power, renewable energy use, and equitable data access. The country’s next challenge will be to balance scale with sustainability as it moves toward becoming one of the world’s largest data economies.
Mumbai Leads India Data Centre Growth Crossing 1.5 GW With 53 Percent Share
