Indian Economy News

India likely to add more than 200 MW of new data centre capacity in H2 2026, pushing total capacity to 2 GW: CBRE

  • IBEF
  • October 7, 2026

India’s data centre market added approximately 130 MW of new capacity during H1 2026, while more than 200 MW is expected to become operational in H2 2026, according to CBRE South Asia’s report Beyond Growth: India’s Rise Among APAC’s Leading Data Centre Markets. With the anticipated additions, India’s total operational data centre capacity is on track to reach 2 GW by the end of 2026, reinforcing the country’s growing position in the Asia Pacific data centre ecosystem. Mumbai accounted for 94% of the new supply added during H1 2026, retaining its position as the country’s primary data centre hub. The sector also attracted approximately Rs. 3.34 lakh crore (US$ 38 billion) in investment commitments during H1 2026, taking cumulative commitments since 2021 to approximately Rs. 15.29 lakh crore (US$ 173 billion). Hyperscale and colocation investments accounted for close to 62% of cumulative commitments from 2021 to H1 2026, while more than 15% of commitments were linked to artificial intelligence (AI), highlighting the increasing influence of AI-driven demand.

India has also advanced from a ‘High Growth Market’ to the Asia Pacific ‘Leading Data Centre Markets’ category in 2026, joining Japan, Australia and Mainland China. The growing maturity of the sector is reflected in the rising share of Tier IV facilities, which increased to 43% of overall supply in H1 2026 from 21% in 2024. Multi-city portfolios accounted for more than 85% of commitments in H1 2026, while domestic investors held the largest share of cumulative capital deployed since 2021 at 38%, followed by the US at 27%. Domestic developers accounted for 48% of new supply added in H1 2026, ahead of American players at 28% and European players at 24%. Mumbai, Chennai and Delhi-NCR continue to account for more than 80% of operational capacity, while emerging hubs such as Hyderabad, Bengaluru, Kolkata and Visakhapatnam are expected to attract further activity, supported by land, power, water availability and state-level incentives. The expansion is being driven by demand from BFSI institutions, cloud service providers, hyperscalers, government entities, technology companies and over-the-top platforms.

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

Partners
Loading...