India’s data centre sector has attracted investment commitments of about USD 173 bn since 2021, with installed capacity projected to reach 2 gigawatts (GW) by the end of 2026, according to real estate consultant CBRE. The sector is benefiting from rising technology adoption, cloud usage, artificial intelligence (AI) demand and digitalisation initiatives.

The market added about 130 megawatts (MW) of new capacity during the first six months of 2026. More than 200 MW is expected to become operational during the second half of the year, indicating continued expansion as operators respond to growing demand from enterprises, cloud service providers and digital platforms.

Investment commitments during January-June 2026 stood at about USD 38 bn, taking the cumulative total since 2021 to USD 173 bn. Hyperscale and co-location projects accounted for close to 62 per cent of cumulative commitments made between 2021 and the first half of 2026, highlighting the importance of large-scale facilities and shared infrastructure in the sector’s growth.

CBRE said the scale and consistency of investment indicated sustained confidence in India’s data centre market. The consultant attributed the momentum to increased cloud adoption, AI-related requirements and continuing digitalisation, adding that these factors were supporting further capacity expansion and strengthening India’s position among leading data centre markets in the Asia-Pacific region.

More than 15 per cent of cumulative commitments were linked to AI demand, reflecting its growing influence on investment decisions and infrastructure planning. Mumbai continued to hold a leading position in the market, while the projected achievement of 2 GW of installed capacity by year-end would mark a significant milestone for India’s rapidly expanding data centre industry. The investment pipeline also indicates that the market is scaling while becoming more structured and focused on long-term demand.