India’s operational data centre capacity on track to reach 2 GW by the end of the year

New Delhi: India's data centre (DC) market added approximately 130 MW of new capacity in the first six months of 2026 (H1 2026), while more than 200 MW is expected to go live in the second half of the year, according to CBRE.

With this addition, the country’s total operational data centre capacity is on track to reach 2 GW by the end of the year.

Mumbai continued to anchor this expansion, accounting for 94% of all new supply added in H1 2026. This reinforced the city’s position as India's primary DC hub even as the overall market scales and diversifies.

India's DC sector attracted approximately USD 38 billion in investment commitments in H1 2026, taking cumulative commitments since 2021 to approximately USD 173 billion. Hyperscale and colocation investments accounted for close to 62% of the cumulative DC commitments from 2021 to H1 2026.

More than 15% of cumulative commitments from 2021 to H1 2026 were tied to artificial intelligence (AI), reflecting the growing influence of AI-linked demand on the sector's investment trajectory.

"Touching 2 GW of installed capacity by the end of this year would be a significant milestone, but what stands out is the discipline behind this growth: India's cumulative investment commitments of over USD 170 billion, Mumbai's continued leadership, and a rising share of AI-linked capital all point to a market that is maturing even as it expands. This also reinforces India's position within Asia Pacific, where data centres remain among investors' most preferred asset classes,” said Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE.

India's rise is also being recognised at a regional level. The country has advanced from a 'High Growth Market' to Asia Pacific's 'Leading Data Centre Markets' category in 2026, joining Japan, Australia and Mainland China, reflecting the increasing scale, maturity and strategic importance of its ecosystem. Investor interest in the space remains strong: data centres ranked as the fourth most preferred asset class in CBRE's 2026 Asia Pacific Investor Intentions Survey.

The market's growing sophistication is also reflected in its facility mix, with the share of Tier IV data centres in overall supply rising to 43% in H1 2026, up from 21% in 2024. Investment strategies have also evolved: multi-city portfolios accounted for more than 85% of commitments in H1 2026, while domestic investors continued to hold the largest share of cumulative capital deployed since 2021, at 38%, ahead of the United States at 27%.

Domestic developers accounted for 48% of new supply added in H1 2026, ahead of American (28%) and European (24%) players, underscoring the growing depth of Indian capital and execution capability in the sector.

Established micro-markets such as Navi Mumbai (Mumbai) and Siruseri(Chennai) continue to witness the bulk of new activity. The strategic advantages of these markets, including multiple cable landing stations, supportive government policies, and established financial ecosystems, have reinforced their position as preferred destinations for BFSI institutions, cloud service providers, government entities, and technology and media companies (including OTT platforms).

However, while more than 80% of India's operational capacity remains concentrated in Mumbai, Chennai and Delhi-NCR, the incremental supply is expected to extend into secondary and emerging hubs, supported by the availability of land, power and water in these locations.

"The strength of India's data centre supply pipeline reflects the sustained demand we continue to see from BFSI, cloud, hyperscale and OTT occupiers, particularly across Mumbai and Chennai," said Ram Chandnani Managing Director, Leasing Services, CBRE India.