+
India Data Centre Sector Attracts USD 173 bn
ECONOMY & POLICY

India Data Centre Sector Attracts USD 173 bn

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.

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.

Related Stories

Gold Stories

Next Story
Infrastructure Transport

Madhya Pradesh Plans Airport Every 150 Km, Airstrip Every 75 Km

The Madhya Pradesh government plans to establish an airport every 150 km, an airstrip every 75 km and a helipad every 45 km, according to the state aviation department. Airports being developed in Ujjain and Shivpuri are expected to take the state’s airport count to 10. The government stated that Madhya Pradesh currently has eight airports in eight cities. The locations named by the department include Indore, Bhopal, Jabalpur, Gwalior, Khajuraho, Rewa and Satna. The state also has more than 20 airstrips and 220 helipads, while permanent helipads are planned in all 230 Assembly constituencies..

Next Story
Infrastructure Transport

West Bengal Plans Four Airports for 2028 Completion Under UDAN

West Bengal will develop four new airports under an agreement signed between the Union Civil Aviation Ministry and the state government, with all facilities targeted for completion by 2028. Union Civil Aviation Minister K Rammohan Naidu said the airports would be located at Charra in Purulia, Kalaikunda in Paschim Medinipur, Balurghat in Dakshin Dinajpur and Hasimara in Alipurduar. The project is part of the Centre’s regional connectivity UDAN programme. The Union government has committed Rs. 290 bn for West Bengal’s aviation sector over the next decade, while the state government will pro..

Next Story
Infrastructure Transport

Mumbai Airport Bars Russian Airlines as Agent Seeks Ministry Intervention

Mumbai airport has stopped accepting cargo booked on Russian flag carrier Aeroflot, disrupting shipments and prompting the airline’s cargo sales agent, Delmos Aviation, to seek intervention from the Ministry of Civil Aviation. The restrictions also affect cargo booked on Volga-Dnepr Airlines, according to a letter submitted by Delmos Aviation to the ministry on September 30. Aeroflot operates daily flights between Moscow and Delhi and runs a winter seasonal service to Goa. Bonded cargo from Mumbai and other cities is transported by road to Delhi before being flown to Russia. The agent said t..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code