India Data Centre Market Grows on Cloud, AI and Digital Adoption
India’s data centre market continued its rapid expansion in H1 2026, reinforcing the country’s position as one of the fastest-growing digital infrastructure destinations in the Asia Pacific region. Driven by rising data consumption, cloud adoption, artificial intelligence workloads, and ongoing digital transformation initiatives, operational data centre capacity has expanded significantly over the past few years. Supported by strong investment activity and a robust development pipeline of nearly 3.9 GW, India is well positioned for the next phase of growth in data centre and AI infrastructure.
Key Highlights from H1 2026
- India is the third-largest data centre market in APAC by operational capacity.
- Operational data centre capacity reached nearly 1.8 GW, rising substantially from around 400 MW in 2019.
- Mumbai remains India's largest data centre market and one of the most significant hubs in the APAC region.
- Hyderabad, Chennai and Delhi NCR continue to strengthen their position as major secondary data centre markets.
- India has a robust development pipeline of nearly 3.9 GW across under-construction and planned projects.
- Global hyperscalers, cloud providers and domestic operators continue to expand investments across key markets.
- Visakhapatnam has emerged as a new destination for AI-focused data centre investments.
- Growing demand from cloud computing, digital services, AI workloads and enterprise digitization is expected to support long-term growth.