According to a CBRE Group analysis, India’s data center industry is predicted to increase by about 30% annually in 2026, powered by an estimated 500 MW of new supply.
The expansion comes after a robust 2025 in which capacity surpassed 1,700 MW with record additions of 440 MW. Investor interest is being fueled by growing demand for cloud computing, AI infrastructure, and data localization; cumulative investments are expected to surpass $180 billion by 2026.
Mumbai accounts for more than half of operational capacity, demonstrating the continued dominance of metro cities. These hubs account for around 90% of the nation’s data center inventory, together with Chennai, Delhi-NCR, and Bengaluru. However, because to growing digital demand and 5G rollout, tier-II cities like Ahmedabad, Visakhapatnam, Patna, and Bhopal are becoming more popular.
Energy usage is becoming a major issue as the industry grows. In order to guarantee sustainability and long-term power security, developers are increasingly using renewable energy.
India is quickly becoming one of the Asia-Pacific region’s most active data center markets because to robust regulatory backing and growing digital penetration.
Source – Business Today
