This stock measures the total computing power infrastructure available across a country’s all data centres. The total DC capacity in the country reached the 1,700 MW at the end of 2025. In 2026, it projects a supply addition of 500 MW.
“The combination of a low-bottleneck development environment, a rapidly expanding digital economy, and aggressive hyperscaler commitments positions India as one of the most compelling DC markets globally,” said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE.
“As AI workloads multiply and the demand base broadens beyond cloud to Neocloud, GCCs and enterprise users, we expect the country’s capacity trajectory to remain steep well beyond 2028,” Magazine said.
Mumbai continues to anchor national capacity at 800+ MW, with a further 750 MW under construction or committed. Chennai, Hyderabad and Delhi NCR are emerging as the next wave of hyperscale destinations, while Bangalore remains the hub for enterprise colocation demand.
“While several large markets grapple with power constraints, rising construction costs and community resistance, India presents developers and investors with a combination of cost competitiveness, policy support and scalability. Paired with deepening demand across Tier I and Tier II cities, this underpins our confidence in the 3 GW milestone,” said Ada Choi, CFA, Head of Asia Pacific Research, CBRE.
The report adds that the total data centre investment in the APAC region reached a record $11.6 billion in 2025. Investors are increasingly favouring asset-specific exposure and improved liquidity. Platform and operating company opportunities are also expanding, with entity-level transactions reaching $8.3 billion in 2025.At the same time, more operators are adopting capital recycling and fund management models. These approaches support scale, strengthen balance sheets, and provide access to more diversified portfolios.
Currently, hyperscalers account for 50–55% of market activity, with the January-March quarter witnessing a sharp spike in demand from cloud service providers contracting large capacities of over 300 MW. Beyond traditional cloud players, the demand is now coming from Neocloud operators, semiconductor companies, research & development users, and Global Capability Centres (GCCs), reflecting the maturation of India’s DC occupier base.
AI continues to be the key structural driver of DC demand, pushing requirements toward higher rack densities, advanced liquid cooling configurations, and more demanding compute workloads.
The report mentions that the global neocloud providers are actively targeting India’s Tier I cities, with a planned capacity take-up of approximately 5–15 MW per site. These specialised cloud providers own top-tier GPUs, provide GPU-as-a-Service (GPUaaS), and lease computing power to end-users including hyperscalers, AI labs, startups, research firms, media and gaming companies.
Additionally, Tier II cities are also gaining visibility, with edge-style facilities coming on stream in Jaipur, Ahmedabad and Lucknow, and rising enquiries for containerised data centres in the 8–10 MW range.