India among top data centre markets; Mumbai costs among lowest globally
- IBEF
- November 11, 2025
India has emerged as a highly attractive market for data centre investment, with Mumbai ranking as the second-lowest-cost region globally for data centre construction in 2025, according to the Turner & Townsend Data Centre Construction Cost Index. The city’s construction cost stands at Rs. 589 (US$ 6.64) per watt, placing it 51st out of 52 global markets assessed, making it the second most cost-effective location worldwide. Mumbai also benefits from a low electricity tariff of Rs. 0.0967 (US cents 6.71) per kWh, over 50% cheaper than Shanghai, further enhancing its operational cost advantage. Despite producing 20% of global data, India accounts for only 3% of global data centre capacity, highlighting substantial domestic market expansion potential and an estimated Rs. 13,83,876 crore (US$ 156 billion) required for regional buildout. Managing Director for Real Estate in Asia at Turner & Townsend, Mr. Sumit Mukherjee, noted that Mumbai’s competitive construction costs and massive market opportunity provide a significant edge for investors.
The report emphasised the need for securing reliable power and strengthening supply chains to fully leverage India’s data centre potential. Average construction costs across 52 global markets are projected to rise by 5.5% in 2025, underscoring the importance of innovative, energy-efficient designs and advanced cooling technologies for high-density, GPU-optimised facilities. Mr. Sumit Mukherjee highlighted that to capitalise on the Artificial Intelligence (AI)-driven expansion, developers must prioritise reliable utilities, robust supply chains, and rapid deployment strategies. These measures are critical to mitigate risks, accelerate operational readiness, and capture India’s growing demand for advanced data centre infrastructure.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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