India’s data centre industry is experiencing explosive growth, positioning itself as one of the most dynamic digital infrastructure markets in the Asia-Pacific region. According to a recent CBRE Research report, the country’s data centre capacity has already exceeded 1.5 GW as of Q3 2025, representing an impressive 30% year-on-year increase that solidifies India’s status as a regional powerhouse.

The nation’s rapid ascent in global data centre rankings is fueled by competitive construction costs, supportive government policies, and an expanding digital ecosystem. With construction costs ranging between $6.8-7.25 million per MW—significantly lower than markets like Japan and Singapore—India offers compelling advantages for investors and operators.

Critical to this growth is India’s robust subsea cable infrastructure, with over half of all subsea cables landing in Mumbai and Chennai. These connectivity hubs provide world-class network capabilities, enhanced redundancy, and strategic access to markets across the Middle East, Southeast Asia, and Europe. The pipeline includes 12 new subsea cable projects scheduled between 2025 and 2028, further strengthening India’s digital backbone.

Mumbai continues to dominate as India’s largest data centre market with over 56 GW of installed capacity, driven primarily by hyperscale demand. Meanwhile, Chennai, Bengaluru, and Delhi-NCR are showing strong growth fueled by cloud services, government requirements, and telecommunications expansion. Emerging Tier-II hubs including Hyderabad, Pune, and Kolkata are experiencing compound annual growth rates of 15-26% through 2025.

The report identifies artificial intelligence, cloud computing, big data, IoT, and digital transformation as key growth drivers. India’s data centre GPU market is projected to grow at a remarkable 36% CAGR through 2030, while cloud adoption is outpacing other APAC countries, supported by more than 800 global capability centres and increasing enterprise digitalization.

Regulatory measures like the Digital Personal Data Protection Act (2023) are accelerating the shift toward local data storage and processing. This has contributed to cumulative data centre investments surpassing $30 billion by Q3 2025, with significant participation from global investors, private equity firms, and hyperscale cloud operators.

Sustainability is becoming central to India’s next-generation data centres, with operators increasingly adopting renewable energy sources, water-efficient cooling systems, circular resource management, and green procurement standards. Government initiatives are further promoting the integration of solar, wind, and hybrid power models in new facilities.

With India’s digital population expanding, OTT consumption surging, and AI workloads multiplying, the country is expected to attract even greater investments between 2026 and 2030. CBRE concludes that India’s strong fundamentals, cost advantages, and extensive connectivity infrastructure position it to become a global leader in data centre capacity within the next decade.