India Data Centre Pipeline Reaches 3.1 GW

28 May 2026 CW Team

The country ranks as the second-largest data centre market in Asia Pacific with 1.6 GW of operational capacity. It is also among the region’s top three markets by development pipeline, with 3.1 GW under construction and planned.

The report evaluated 107 global markets across 24 variables, including real estate fundamentals, power infrastructure, development activity, regulation and operational risk. It noted that global data centre markets are entering an execution-driven phase, where power availability, land access, regulatory readiness and delivery capability are becoming key factors.

India’s data centre ecosystem is supported by multiple markets, including Mumbai, Hyderabad, Chennai, Delhi NCR, Pune and Bengaluru. Mumbai continues to anchor India’s position as a primary market in Asia Pacific and is expected to cross 1 GW of operational capacity by the end of 2026.

Secondary markets such as Hyderabad, Chennai, Delhi NCR and Pune are also witnessing higher investment and development activity. Hyderabad has been ranked as the top secondary market in Asia Pacific and ninth globally, while Bengaluru has been positioned as a tertiary data centre market.

Hyperscaler demand remains a major driver of expansion across India, especially in Mumbai, Hyderabad and Pune. AI workloads and large-scale cloud deployments are also influencing capacity expansion strategies. The report also noted the emergence of locations such as Vizag as potential future AI hubs.

India’s long-term pipeline remains strong, with over 10.5 GW of capacity at the land stage. The market also remains underpenetrated, with data centre density at around 943,000 people per MW, indicating significant room for growth. Vacancy declined to 12.9 per cent as of Q4 2025, reflecting sustained demand.

The report also highlighted that India ranked fourth globally in electricity production growth between 2022 and 2025. However, transmission losses of 14.2 per cent indicate the need for continued improvement in grid efficiency as demand scales.

Gautam Saraf, Executive Managing Director, Mumbai & New Business, Cushman & Wakefield, said India is well positioned due to strong demand visibility, an expanding development pipeline and a growing multi-market ecosystem across primary and emerging locations.

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India is emerging as one of Asia Pacific’s key digital infrastructure growth markets, supported by rising artificial intelligence adoption, hyperscale cloud expansion and enterprise demand, according to Cushman & Wakefield’s Global Data Center Market Comparison 2026 report.The country ranks as the second-largest data centre market in Asia Pacific with 1.6 GW of operational capacity. It is also among the region’s top three markets by development pipeline, with 3.1 GW under construction and planned.The report evaluated 107 global markets across 24 variables, including real estate fundamentals, power infrastructure, development activity, regulation and operational risk. It noted that global data centre markets are entering an execution-driven phase, where power availability, land access, regulatory readiness and delivery capability are becoming key factors.India’s data centre ecosystem is supported by multiple markets, including Mumbai, Hyderabad, Chennai, Delhi NCR, Pune and Bengaluru. Mumbai continues to anchor India’s position as a primary market in Asia Pacific and is expected to cross 1 GW of operational capacity by the end of 2026.Secondary markets such as Hyderabad, Chennai, Delhi NCR and Pune are also witnessing higher investment and development activity. Hyderabad has been ranked as the top secondary market in Asia Pacific and ninth globally, while Bengaluru has been positioned as a tertiary data centre market.Hyperscaler demand remains a major driver of expansion across India, especially in Mumbai, Hyderabad and Pune. AI workloads and large-scale cloud deployments are also influencing capacity expansion strategies. The report also noted the emergence of locations such as Vizag as potential future AI hubs.India’s long-term pipeline remains strong, with over 10.5 GW of capacity at the land stage. The market also remains underpenetrated, with data centre density at around 943,000 people per MW, indicating significant room for growth. Vacancy declined to 12.9 per cent as of Q4 2025, reflecting sustained demand.The report also highlighted that India ranked fourth globally in electricity production growth between 2022 and 2025. However, transmission losses of 14.2 per cent indicate the need for continued improvement in grid efficiency as demand scales.Gautam Saraf, Executive Managing Director, Mumbai & New Business, Cushman & Wakefield, said India is well positioned due to strong demand visibility, an expanding development pipeline and a growing multi-market ecosystem across primary and emerging locations.

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