India’s Data Centre Expansion Set to Add 3.86 GW by 2030

India’s data centre industry is entering a significant new phase of expansion, with nearly 3.86 GW of additional capacity expected to be developed by 2030, according to Cushman & Wakefield’s India Data Centre Market H1 2026 update.

The country’s seven leading data centre markets added 178 MW of capacity during the first half of 2026, taking operational capacity to 1,789 MW. A further 509 MW is currently under construction, while another 3,351 MW is in the planning pipeline. Together, these projects represent almost 3.9 GW of potential new capacity over the coming years.

Mumbai continues to lead

Mumbai remains the largest data centre market in India, with approximately 890 MW of operational capacity. The city also has the country’s largest upcoming supply pipeline, estimated at 1,726 MW.

At the same time, growth is becoming more geographically diversified. Hyderabad, Chennai, Delhi-NCR, Pune, Bengaluru and Kolkata are emerging as important markets alongside Mumbai, expanding India’s digital infrastructure footprint beyond its traditional concentration in the country’s largest commercial centres. IIndia Brand Equity Foundation+1

India had 147 data centres operated by 33 providers across the leading markets in H1 2026. Despite the addition of new capacity, colocation vacancy stood at 14.9%, indicating continued demand for data centre space.

Cloud and AI are reshaping demand

The expansion is being supported by several structural trends, including increasing cloud adoption, artificial intelligence workloads, enterprise digitalisation and the continued growth of data-intensive services.

Cushman & Wakefield said India’s data centre ecosystem is broadening in terms of operators, occupiers and locations. The firm expects the additional capacity planned through 2030 to support the next stage of cloud adoption, AI deployment and wider data-driven activity across the economy. C

The emergence of AI-focused infrastructure is also creating new opportunities outside established hubs. Cushman & Wakefield has identified Visakhapatnam as an emerging destination for AI-oriented data centre investment, indicating that future development could increasingly extend into locations offering suitable power and infrastructure availability.

Nearly $30 billion in development capital

The expansion will require substantial investment. India is estimated to need around ₹2.84 lakh crore, or US$29.9 billion, in development capital through 2030, according to the Cushman & Wakefield assessment.

The investment requirement forms part of a much larger Asia-Pacific data centre build-out. Cushman & Wakefield projects the region’s total capacity to increase 2.7 times by 2030, with the sector requiring more than US$280 billion in capital expenditure. Around 77% of that investment is expected to be concentrated in Japan, Malaysia, Australia, India and Indonesia.

Infrastructure requirements will become increasingly important

The scale of the planned expansion also highlights the importance of reliable power, connectivity, land and other supporting infrastructure.

In September 2026, the Government of India held a CEO roundtable focused on expanding the country’s data centre ecosystem. Discussions included power availability, data-centre-ready land, renewable energy procurement and faster regulatory approvals. The government also noted that hyperscalers accounted for more than 80% of data centre absorption during H1 2026.

With operational capacity already approaching 1.8 GW and another 3.86 GW in the development pipeline, India’s data centre market is moving from a relatively concentrated infrastructure model toward a broader national ecosystem. The next phase of growth is likely to be shaped not only by demand for cloud and AI computing, but also by the availability of power, land, connectivity and suitable locations for large-scale facilities.

---

Reference:

Cushman & Wakefield — India Data Centre Market H1 2026 and IBEF — India Data Centre Pipeline: 3,860 MW of New Capacity Expected by 2030.

---