India’s Data Centre Capacity Set to Zoom in 2026; Total Stock Expected to Rise by ~500 MW Across Major Cities

April 1, 2026: India’s total data centre (DC) stock across major cities is projected to increase by
~30% Y-o-Y in 2026, supported by an estimated 500 MW of new supply addition, according to CBRE’s India Alternate Sectors Outlook 2026 report. In 2025, the total DC capacity in the country reached the ~1,700 MW mark, driven by a record 440 MW of new supply addition—a significant 160% surge compared to 2024.

“The data centre story in India is no longer about potential but about execution at scale. The sector’s resilience and attractive return potential are establishing it as a primary focus for investors, with foreign capital playing a dominant role,” said Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE.
“This interest is supported by a robust regulatory framework that continues to enhance transparency and streamline credit access. The institutional momentum is expected to drive a significant upswing in deployments, positioning India as one of the fastest growing and most dynamic DC markets in the Asia-Pacific region.”
The report further highlighted that the asset class witnessed investment commitments of USD 56.4 billion in 2025 alone, bringing the cumulative total to USD 126 billion. This year, these
commitments are projected to rise by ~45%, potentially surpassing USD 180 billion.
While Telangana, Maharashtra, Andhra Pradesh, Tamil Nadu, and Uttar Pradesh are likely to lead these capital inflows, the investment landscape is beginning to diversify further. Driven by the requirements for lower latency, 5G proliferation, and data localisation, DC operators are moving beyond traditional metro-centric models to direct sustained investment towards tier-II cities such as Ahmedabad, Visakhapatnam, Patna, and Bhopal, amongst others.
The sector is also garnering rising interest from investors across the Asia-Pacific (APAC) region.
According to CBRE’s 2026 Asia Pacific Investor Intentions Survey, DCs have emerged as the asset class where investors in the region expect the highest price appreciation in 2026.

News