India’s data centre capacity has reached 1.5 GW by the end of September, marking an increase of 260 MW since the beginning of the year, according to a recent report by a property consultancy firm. The report revealed that Mumbai accounts for 53 percent of the country’s total capacity, underscoring its position as India’s leading data hub.
The rise in capacity is driven by rapid digital adoption, government-led initiatives promoting data localisation, and growing corporate investments in Artificial Intelligence. Anshuman Magazine, Chairman and CEO of the firm for India and neighbouring regions, stated that government efforts to keep critical data within the country, along with favourable policy measures, are successfully attracting major investors.
Investment and regional distribution
Since 2019, India has secured around 94 billion dollars in data centre investment commitments. Telangana, Maharashtra, and Tamil Nadu have emerged as the top three states attracting these investments. During the January to September period of 2025 alone, investment commitments worth 30 billion dollars were made for new data centre projects.
Among the key announcements, the Tata Group plans to build 1 GW of data centre capacity, further strengthening India’s digital infrastructure.
Mumbai continues to attract the highest concentration of projects due to its proximity to international internet exchange points and its role as a landing hub for global submarine cables. The geographical distribution of data centre capacity is as follows:
– Mumbai: 53 percent
– Chennai: 20 percent
– Delhi NCR: 10 percent
– Bengaluru: 7 percent
Cost and demand advantages
India remains one of the most cost-efficient destinations for building and operating data centres. Lower construction and electricity costs compared to countries like Singapore, China, and Japan have made India an attractive option for global players.
The increasing number of Global Capability Centres (GCCs) established by international companies has further fuelled demand for computing infrastructure. These centres require significant processing power to support operations related to artificial intelligence and data analytics.
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