India’s data centre capacity is set to increase by approximately 30% in 2026, driven by high demand and sustained investor interest. A recent report by CBRE forecasts the addition of nearly 500 MW of new supply this year, following a significant 160% surge from the previous year, with 440 MW added in 2025. The country’s total data centre capacity reached about 1,700 MW by the end of 2025.
Investment in the sector has been substantial, with commitments totaling $56.4 billion in 2025, bringing the cumulative investment to $126 billion. Projections indicate a potential 45% increase in commitments this year, surpassing $180 billion. Anshuman Magazine, Chairman and CEO of CBRE, emphasized that India’s data centre landscape now focuses on large-scale execution rather than just potential, with foreign investments playing a crucial role in driving growth.
Key states like Maharashtra, Telangana, Andhra Pradesh, Tamil Nadu, and Uttar Pradesh are expected to lead investments, while tier-II cities such as Ahmedabad, Visakhapatnam, Patna, and Bhopal are witnessing increased activity due to growing demand for lower latency, 5G deployment, and data localization. Mumbai remains the primary data centre hub, accounting for over 50% of India’s operational data centre inventory, with Mumbai, Chennai, Delhi-NCR, and Bengaluru collectively contributing nearly 90% of the total capacity.
The report also highlights the mounting pressure on power infrastructure from rising demands in artificial intelligence and cloud computing, prompting operators to prioritize renewable energy sourcing. In 2025, India added a record 44.5 GW of renewable capacity. CBRE anticipates that favorable government policies, including tax incentives, green capital expenditure support, and regulatory relaxations, will further boost investments and position India as a significant data centre hub in the Asia-Pacific region.
