India Emerges as Major Asia-Pacific Data Centre Hub with Strong Growth Pipeline: Report

New Delhi, May 2026 : India has emerged as the second-largest data centre market in the Asia-Pacific region with 1.6 GW of operational capacity and is also among the top three globally in terms of development pipeline, with 3.1 GW of capacity under construction and planned, according to a new industry report released on Wednesday.

The report highlights that India is rapidly becoming one of the most significant growth destinations for digital infrastructure in Asia-Pacific, driven by accelerating adoption of artificial intelligence (AI), rapid hyperscale cloud expansion, and rising enterprise demand for secure and scalable data storage solutions.

According to global real estate consultancy Cushman & Wakefield, India’s data centre ecosystem now spans multiple key markets, including Mumbai, Hyderabad, Chennai, Delhi-NCR, Pune, and Bengaluru, which are part of 107 global markets evaluated in the study.

The report notes that the global data centre industry is entering a more execution-focused phase, where access to reliable power supply, infrastructure readiness, and delivery capabilities are becoming just as critical as demand itself.

“The global data centre sector is moving into a more execution-driven phase of growth, where access to power, infrastructure readiness and delivery capability are becoming as important as demand itself,” said Gautam Saraf, Executive Managing Director, Mumbai and New Business, Cushman & Wakefield.

He added that India is well positioned in this evolving landscape due to strong demand visibility, an expanding development pipeline, and a growing multi-market ecosystem that spans both established and emerging cities.

“As capacity requirements continue to evolve, markets that can support scalable deployment, reliable infrastructure, and faster execution timelines are expected to see stronger long-term momentum,” Saraf noted.

Mumbai continues to anchor India’s position as a primary data centre hub in the Asia-Pacific region and is one of the fastest-growing markets globally. The city is expected to cross 1 GW of operational capacity by the end of 2026, strengthening its role as a key digital infrastructure centre.

At the same time, secondary markets such as Hyderabad, Chennai, Delhi-NCR, and Pune are witnessing increased investor interest and development activity, reflecting the geographic diversification of India’s data centre ecosystem.

Hyderabad has been identified as the top secondary market in the Asia-Pacific region and ranks ninth globally, highlighting its growing importance in the digital infrastructure sector.

Bengaluru, meanwhile, is classified as a tertiary market but continues to play a supporting role in India’s expanding digital economy, particularly due to its strong technology and enterprise base.

The report further underscores India’s long-term growth potential, noting that more than 10.5 GW of capacity remains at the land acquisition stage. This indicates a strong pipeline of future development as operators continue to secure land and prepare for sustained demand from cloud computing, AI workloads, and digital transformation initiatives.

Overall, the findings point to India’s rapid transformation into a strategic global data centre destination, supported by rising digital consumption, enterprise digitisation, and large-scale infrastructure investments.