India has emerged as the second-largest data centre market in the Asia-Pacific (APAC) region by operational capacity. According to a new report by global real estate services firm Cushman & Wakefield, the market has reached 1.6 gigawatts (GW).
The report noted that India accounted for nearly 9% of APAC’s total operational data centre capacity in 2025, as demand surged for artificial intelligence (AI), cloud computing, digital payments, streaming services and enterprise digitisation. The country now trails only China in the region.
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What’s Inside the Report:
Mumbai remained India’s largest data centre market, with around 42% of the total operational capacity, followed by Chennai, Hyderabad, Bengaluru and Delhi-NCR.
These cities continue to attract hyperscalers, telecom firms and cloud service providers due to stronger connectivity infrastructure, subsea cable access and the availability of land and power.
The report noted that India’s operational capacity has nearly doubled over the last few years as global technology firms and domestic operators ramp up investments in AI-ready infrastructure and large-scale cloud facilities.
The report further denotes that India’s data centre industry is expected to maintain strong growth momentum as demand for AI computing, data localisation and digital services increases across sectors.
The country’s under-construction capacity pipeline remains one of the strongest in the APAC region. Industry estimates suggest several new facilities will become operational over the next three to five years.
Government-backed digital infrastructure initiatives, internet expansion and enterprise migration to cloud platforms also contributed to the sector’s expansion.
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AI workloads, policy support drive new investments
Industry experts noted that the growing requirements for AI workloads, low-latency services, and edge computing are major drivers of demand.
India’s growing role in the global digital infrastructure ecosystem has also attracted investments from international data centre operators, private equity firms and infrastructure funds. Market analysts said the sector is witnessing increased interest due to stable demand, rising data consumption and long-term growth visibility.
The report comes at a time when India is positioning itself as a key destination for AI infrastructure, hyperscale data centres and next-generation cloud investments in the region.
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!
