India’s data centre market is expanding quickly, with more than 200 MW of new capacity expected to come online in the second half of 2026, according to a report
by CBRE South Asia. If that happens, India’s total operational data centre capacity could touch 2 GW by the end of the year.
The country added around 130 MW of new capacity during the first six months of 2026. Mumbai remained the biggest contributor, accounting for 94 per cent of the fresh supply added during the period. The growth is being driven by cloud companies, large technology firms, banks, streaming platforms and rising demand linked to artificial intelligence.
Read more: Tata and OpenAI to build India’s first gigawatt scale AI data center
Data centre investments surge in India
CBRE said India attracted around USD 38 billion in data centre investment commitments in H1 2026. Cumulative commitments since 2021 have now reached about USD 173 billion.
Hyperscale and colocation projects accounted for nearly 62 per cent of these commitments. More than 15 per cent were linked to AI-related infrastructure.
“India’s data centre sector continues to scale at a pace few markets in the region can match,” said Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE.
India has now moved into CBRE’s category of Asia Pacific’s “Leading Data Centre Markets”, alongside Japan, Australia and Mainland China.
Read more: Reliance plans to build 1.5 GW Data Centre: India’s biggest AI hub …
Mumbai leads, but new hubs are emerging
More than 80 per cent of India’s operational capacity remains concentrated in Mumbai, Chennai and Delhi-NCR.
CBRE expects future capacity additions to spread to cities including Hyderabad, Bengaluru, Kolkata and Visakhapatnam, helped by land availability, electricity access and state incentives.
Domestic developers accounted for 48 per cent of new capacity added in H1 2026, followed by American players at 28 per cent and European firms at 24 per cent.
