India has ranked second in the Asia Pacific region for operational data centre capacity, with 1.6 GW currently in operation. The country features among the top three APAC markets by development pipeline, with 3.1 GW under construction or planned, according to a report by Cushman & Wakefield.
The report evaluates 107 global markets across 24 variables, including real estate fundamentals, power infrastructure, development activity, regulation, and operational risk.
India's data centre ecosystem spans multiple cities. Mumbai anchors the country's position as a primary market in Asia Pacific and is expected to surpass 1 GW of operational capacity by the end of 2026.
1 May 2026
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Secondary markets including Hyderabad, Chennai, Delhi NCR, and Pune are increasingly supporting overall growth. Hyderabad ranks as the top secondary market in Asia Pacific and ninth globally among secondary markets. Bengaluru is positioned as a tertiary data centre market within the regional landscape.
Demand Drivers
Hyperscaler demand remains a key driver of expansion, particularly in Mumbai, Hyderabad, and Pune, with AI workloads and large-scale cloud deployments influencing capacity expansion strategies across these markets.
India's long-term expansion pipeline stands at over 10.5 GW of capacity at the land stage. The market remains structurally underpenetrated, with data centre density at approximately 943,000 people per MW. Vacancy declined to 12.9% as of Q4 2025.
India's growth is supported by ongoing policy and infrastructure developments. The Draft National Data Centre Policy 2025 proposes tax exemptions of up to 20 years, along with GST input tax credits on capital expenditure.
On the power front, India ranked fourth globally in electricity production growth between 2022 and 2025. However, transmission losses remain at 14.2%, indicating the need for improvements in grid efficiency as demand scales.
"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.
"India is well positioned within this shift given its combination of strong demand visibility, expanding development pipeline, and growing multi-market ecosystem across both primary and emerging locations. 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 added.
Global Rankings
Globally, Dallas ranked as the world's leading primary data centre market in the 2026 edition of the report, followed by Atlanta, Virginia, Columbus, and Johor.
Within APAC, Johor and Sydney were the only primary markets to feature in the global top 10. Hyderabad's ninth-place ranking among secondary markets globally reflects the growing prominence of India's non-metro cities in the global data centre landscape.
While demand fundamentals remain strong across global markets, the report notes that market competitiveness is increasingly being defined by power availability, execution capability, land access, and regulatory readiness. India's combination of a large development pipeline, multi-city presence, and improving policy environment places it among the more closely watched markets in the global data centre sector. With over 10.5 GW of capacity at the land stage, the scale of India's long-term pipeline indicates sustained activity across primary and secondary markets in the years ahead.
