India’s data centre capacity to cross 3 GW by 2028 on AI, hyperscaler demand
- IBEF
- June 1, 2026
India’s data centre industry is expected to witness significant expansion, with total capacity projected to surpass 3 gigawatts (GW) by the end of 2028, according to a report by CBRE. The growth is being driven by rising adoption of artificial intelligence (AI), increasing cloud computing requirements and strong demand from hyperscalers. India has emerged as one of the most development-friendly data centre markets in the Asia-Pacific region, supported by favourable policies, expanding digital infrastructure and growing demand for data localisation. The report highlights that hyperscale operators and global cloud service providers are accelerating investments to support AI workloads, digital services and enterprise transformation. Mumbai continues to dominate the sector, accounting for nearly half of the country’s operational data centre capacity, supported by robust connectivity infrastructure, power availability and a strong concentration of financial and corporate institutions.
The sector is also witnessing growing investments and capacity additions across major markets such as Chennai, Hyderabad and Delhi-NCR. Industry reports indicate that India’s data centre market could attract investments worth up to Rs. 2,13,550 crore (US$ 22.04 billion) by 2030, driven by demand for AI-ready infrastructure, cloud services and edge computing facilities. The rapid increase in digital consumption, expansion of e-commerce, fintech, gaming and streaming platforms is further strengthening the need for large-scale data storage and processing capabilities. As enterprises accelerate digital transformation initiatives and AI adoption gains momentum, India is expected to strengthen its position as a key regional hub for data centres, supporting economic growth, technology innovation and the country’s expanding digital economy.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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