India Data Centre Pipeline Reaches 3.1 GW
ECONOMY & POLICY

India Data Centre Pipeline Reaches 3.1 GW

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.

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.

Next Story
Products

REHAU Opens Interior Solutions Experience Centre in Gurgaon

REHAU Kitchen has partnered with Third Space Collective to launch a new experience centre in Gurgaon, strengthening its presence in India's growing premium interiors market.Spread across 3,400 sq. ft., the facility showcases a range of interior applications including kitchens, wardrobes, TV units, bar units and storage solutions, offering homeowners, architects and interior designers an opportunity to explore engineered interior products and material innovations under one roof.The collaboration is aimed at making advanced interior solutions more accessible while addressing growing consumer dem..

Next Story
Resources

Sky City Mall Marks Father's Day with Digital Film

Sky City Mall, Oberoi Realty's newest retail destination, has launched a Father's Day digital film that celebrates the bond between fathers and their children while highlighting the evolving role of malls as experience-led destinations.The campaign reflects the growing importance of retail destinations as spaces where shopping, dining, entertainment and social interactions come together to create memorable experiences for families. Through the film, Sky City Mall positions itself as a venue for meaningful moments and celebrations beyond traditional retail activity.The narrative follows a fathe..

Next Story
Real Estate

YKK India to Set Up Manufacturing Facility at Origins Chennai

Mahindra Industrial Park Chennai Limited (MIPCL), a joint venture between Mahindra World City Developers and Sumitomo Corporation of Japan, has announced that YKK India will establish a new manufacturing facility at Origins by Mahindra, Chennai.According to YKK India, the proposed facility will be its third manufacturing plant in the country and will span approximately 149,936 sq. m. The company plans to invest US$150 million in the project, which is expected to be completed by February 2028.YKK India, a manufacturer of fastening products serving the apparel, textile and industrial sectors, wi..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement