Mumbai, April 1: India’s data center capacity is projected to grow by 30% annually by 2026, driven by strong demand and sustained investor interest in the sector. This information was revealed in a report released on Wednesday.
According to CBRE’s analysis, approximately 500 megawatts of new data center capacity is expected to be added this year, surpassing the record 440 megawatts added in 2025.
By the end of 2025, the total domestic data center capacity is estimated to reach around 1,700 megawatts.
The sector has also attracted new capital, securing investment commitments of $56.4 billion in 2025, bringing total commitments to $126 billion.
These commitments are expected to see an increase of nearly 45% this year, potentially pushing the total to over $180 billion.
Anshuman Magazine, Chairman and CEO of CBRE, stated, “The narrative around data centers in India is no longer about possibilities but about large-scale implementation.” He further emphasized the crucial role of foreign capital in accelerating growth.
The report indicates that major states like Maharashtra, Telangana, Andhra Pradesh, Tamil Nadu, and Uttar Pradesh will play a leading role in investments. However, due to increasing demand for low latency, 5G rollout, and data localization, tier-II cities such as Ahmedabad, Visakhapatnam, Patna, and Bhopal are also witnessing rapid activity.
Additionally, the report highlights that Mumbai remains the largest hub, housing over 50% of India’s operational data centers.
Mumbai, Chennai, Delhi-NCR, and Bengaluru collectively contribute approximately 90% of the total capacity.
The report also notes that the rising demand from AI and cloud computing is putting pressure on power infrastructure, prompting operators to focus on renewable energy sources.
India added a record 44.5 gigawatts of renewable energy capacity in 2025.
According to CBRE, supportive government policies, including tax incentives, green capital expenditure support, and regulatory simplification, are expected to further accelerate investments and establish India as a leading data center hub in the Asia-Pacific region.
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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