Asia-Pacific’s (APAC) data centre pipeline continues to expand at pace, with the region’s development pipeline reaching 26.5 gigawatts (GW). According to Cushman & Wakefield’s latest market update, India is steadily strengthening its position in that growth story.
Led by Mumbai, the operational capacity has increased 31 per cent year-on-year, making it one of the region’s fastest-growing data centre markets. The report highlights how artificial intelligence (AI), cloud computing and enterprise digital transformation are reshaping investment across APAC.
Also Read: India Emerges as a Top Data Centre Market, Mumbai Among the Most Cost-Efficient Globally
AI Demand Fuels Record Data Centre Expansion Across APAC
The report says APAC’s data centre sector is entering another phase of rapid expansion as hyperscale cloud providers continue investing in AI-ready infrastructure.
Strong demand for high-performance computing, data localisation requirements and growing digital services are driving new projects across established and emerging markets.
India has once again reinforced its standing as the second-largest data centre market in APAC, supported by an operational capacity of around 1.6 GW and a development pipeline of roughly 3.1 GW.
The country remains among the region’s largest markets for planned capacity, reflecting investor confidence in India’s digital infrastructure.
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Mumbai Leads India’s Growth Story
Mumbai remains India’s largest and most important data centre hub. According to the report, the city recorded 31 per cent annual growth in operational capacity and is expected to cross the 1GW operational milestone by the end of the year.
The city’s strong connectivity through submarine cable landings, reliable power availability and concentration of financial institutions continue to attract hyperscale operators and global cloud companies. At the same time, Hyderabad, Chennai, Delhi NCR and Pune are emerging as key growth centres, broadening India’s digital infrastructure footprint. Hyderabad also ranks among APAC’s leading secondary markets.
Also Read: AWS Begins Rs 60,000 Crore Data Centre Project in Telangana’s Future City
Investment Ecosystem Remains Strong
“AI workloads are changing how developers plan future facilities. They put greater focus on power capacity and large-scale deployments. While mature markets remain attractive, investors are now aggressively exploring secondary locations as demand continues to rise.”
-suggests the research firm.
The report further suggests India’s expanding pipeline positions the country to play a larger role in supporting AI, cloud services and enterprise computing across the region as digital infrastructure investment accelerates.
With AI infrastructure spending gathering pace worldwide, India’s data centre market is set for another phase of expansion.
With Mumbai being the anchoring market, the next wave of growth is likely to come from emerging cities as operators look beyond traditional hubs.
Samarjit Kaur is a journalist and communications professional covering technology & emerging digital trends. With a focus on clarity and context, she reports on developments shaping industries and governance. When not reporting, she chooses to plug-in and relax on her playlists and plan her next bucket-list trips!
