Indian Economy News

India emerges as second-largest data centre market in Asia Pacific

India has emerged as the second-largest data centre market in the Asia-Pacific region, underscoring the country’s growing importance in the global digital economy and its increasing attractiveness as a destination for technology investments. According to a report by Cushman & Wakefield, India’s data centre capacity has expanded rapidly in recent years, driven by accelerating digital adoption, cloud computing demand, artificial intelligence (AI) applications and the growth of data-intensive sectors. The country’s competitive operating costs, expanding digital infrastructure and supportive policy environment have strengthened its position as a preferred location for data centre investments. Major metropolitan hubs such as Mumbai, Chennai, Hyderabad, Bengaluru and Delhi-NCR continue to attract significant investment activity, supported by rising demand from hyperscalers, cloud service providers and enterprise customers. The sector is also benefiting from increasing internet penetration, data localisation requirements and the continued expansion of India’s digital ecosystem.

The report highlighted that India is becoming a key hub for AI-driven infrastructure and digital innovation, supported by a large pool of skilled technology professionals and growing demand for high-performance computing capacity. Rising investments in renewable energy, power infrastructure and connectivity are further enhancing the country’s attractiveness for data centre development. The expansion of the sector is expected to generate employment, strengthen digital capabilities and support emerging technologies across industries including financial services, healthcare, manufacturing and e-commerce. As businesses increasingly adopt cloud-based services and AI applications, demand for data storage and processing infrastructure is expected to remain strong. India’s position as the second-largest data centre market in Asia Pacific reflects the country’s growing role in the global technology landscape and its potential to become a leading destination for digital infrastructure investments in the years ahead.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.