The report highlights that India now ranks as the second-largest data centre market in the Asia Pacific (APAC) region, with 1.6 GW of operational capacity, driven by rapid adoption of artificial intelligence (AI), hyperscale cloud expansion, and growing enterprise demand.

Mumbai Leads, Hyderabad Gains Global Prominence

Among Indian cities, Mumbai has emerged as a primary data centre hub in APAC and is expected to cross 1 GW of operational capacity by the end of 2026. The city continues to anchor India’s data centre growth due to its strong connectivity, financial ecosystem, and proximity to subsea cable landing stations.

Meanwhile, Hyderabad has gained global recognition, ranking ninth among secondary data centre markets worldwide. It is also identified as the leading secondary market in APAC, reflecting strong investor interest and infrastructure readiness.

Other cities such as Chennai, Delhi NCR, Pune, and Bengaluru are also witnessing increasing development activity, indicating a multi-market growth strategy.

Strong Pipeline and Future Capacity

India’s long-term growth outlook remains robust, with over 10.5 GW of additional capacity currently at the land acquisition stage. This signals sustained investor confidence and a strong pipeline of future projects.

Despite this rapid expansion, the sector remains underpenetrated. Data centre density in India stands at approximately 943,000 people per MW, suggesting significant room for further growth compared to global benchmarks.

Vacancy levels have also tightened, declining to 12.9% as of Q4 2025, indicating strong absorption of new capacity and sustained demand.

AI and Hyperscalers Driving Demand

The report notes that hyperscaler demand—led by global cloud providers—and the increasing adoption of AI workloads are the primary drivers of capacity expansion in India. Cities like Mumbai, Hyderabad, and Pune are witnessing large-scale deployments as enterprises scale their digital operations.

Emerging locations such as Visakhapatnam are also being positioned as future AI and data infrastructure hubs, reflecting a shift toward newer, scalable markets.

APAC Trends Mirror India’s Growth

India’s growth aligns with broader trends across the APAC region, where data centre capacity expanded by over 1.5 GW in the past year alone—a 13% increase. Vacancy across the region declined from 12.4% to 10.9%, underscoring strong occupier demand.

Notably, most new data centres are being pre-leased before completion, with nearly all under-construction capacity already committed. This highlights the intensity of demand and supply constraints across key markets.

Policy Support and Power Challenges

India’s data centre expansion is further supported by policy initiatives such as the Draft National Data Centre Policy 2025, which proposes tax incentives and GST benefits to attract investment.

Additionally, the country ranked fourth globally in electricity production growth between 2022 and 2025, strengthening its ability to support energy-intensive data centre infrastructure. However, transmission losses of over 14% remain a concern, pointing to the need for continued upgrades in grid efficiency.

Execution Will Define Next Phase

Industry experts note that the global data centre sector is shifting from a demand-driven to an execution-driven growth phase, where access to power, land, and regulatory approvals will determine market competitiveness.

India’s combination of strong demand visibility, expanding infrastructure, and a growing multi-city ecosystem positions it well to capitalize on this shift. However, timely execution and infrastructure readiness will be critical in sustaining long-term growth momentum.

Also Read: Faster Internet, Better Streaming: How India’s $22Bn Data Boom Will Impact You

The post India’s Data Centre Boom Accelerates with 3.1 GW Pipeline, Mumbai Emerges as Key Hub appeared first on Square Feat India.

From smoother OTT streaming to faster UPI payments and better app performance, the expansion of data centres is quietly becoming the backbone of India’s digital lifestyle.

What Are Data Centres—and Why Should You Care?

Data centres are essentially large facilities that store and process the data behind:

• Your WhatsApp messages
• UPI transactions
• Netflix and YouTube streaming
• Online shopping and banking

Every time you use the internet, your request travels to a data centre and comes back with the result. The closer and more powerful these data centres are, the faster and smoother your experience becomes.

What This Growth Means for You

1. Faster Internet Speeds and Less Buffering

With more data centres being built across India, especially in cities like Mumbai and Chennai:

• Videos will load faster
• Gaming will have lower lag
• Apps will respond quicker

This is especially important as Indians are now consuming over 25 GB of mobile data per month on average.

2. Smoother UPI and Digital Payments

India’s growing reliance on digital payments means:

• Faster transaction processing
• Reduced chances of payment failures
• Better reliability during peak hours

As more data centres come online, platforms handling millions of transactions daily will become more stable.

3. Better OTT & Entertainment Experience

Whether it’s binge-watching shows or watching live cricket:

• Less buffering during peak hours
• Higher video quality (HD/4K streaming)
• Improved user experience on platforms

This is because content gets stored closer to users via local data centres.

4. More Jobs and Local Development

The data centre boom is also creating:

• Jobs in construction, IT, and maintenance
• Demand for land and infrastructure
• Growth in cities like Pune, Hyderabad, and Bengaluru

Even Tier-2 cities are now emerging as future hubs, bringing development beyond metros.

5. Boost to AI and Future Technologies

With the rise of Artificial Intelligence (AI):

• Faster AI tools and services for users
• Better recommendations on apps
• Smarter digital services

India is positioning itself as a global hub for AI infrastructure, which will shape future digital experiences.

Why India Is Becoming a Data Hub

India is attracting massive investments due to:

• Lower costs compared to countries like Japan and Singapore
• Government incentives and policies
• Rapid digital adoption across sectors

Between 2020 and 2024 alone, the sector attracted $13–15 billion in investments, and another $60–70 billion pipeline is expected in the coming years.

Mumbai Leads, But New Cities Are Catching Up

Currently:

• Mumbai holds nearly 49% of India’s data centre capacity
• Chennai follows with strong global connectivity
• Cities like Ahmedabad, Kochi, and Jaipur are emerging as new hubs

This means better digital services not just in metros, but across India.

City-wise Share of Operational Capacity

The Bigger Picture

India’s total data centre capacity is expected to grow from around 1.5 GW today to 4–5 GW by 2030. This expansion is being driven by:

• Rising internet users
• Growth of cloud computing
• Increasing use of AI and digital platforms

Conclusion

While data centres may seem like a backend infrastructure story, their impact is very real for everyday users. From faster internet and seamless payments to better streaming and job creation, this $22 billion growth story is set to touch nearly every Indian connected to the digital world.

Also Read: Data center stock to double in next 3 years to 20 million sq ft

The post Faster Internet, Better Streaming: How India’s $22Bn Data Boom Will Impact You appeared first on Square Feat India.

India’s total data center (DC) capacity stands at 1,263 MW as of April 2025 and is projected to quadruple to over 4,500 MW by 2030, supported by large-scale investments of USD 20–25 billion in the next 5–6 years. This growth is expected to push the DC real estate footprint from the current 15.9 million sq ft to ~55 million sq ft by 2030, according to Colliers India.

 Mumbai: India’s Digital Infrastructure Capital

Mumbai accounts for 41% of India’s current DC capacity and has added 44% of new supply since 2020, making it the undisputed leader in India’s data infrastructure growth story.

Mumbai’s advantages include:

• Proximity to submarine cable landing stations
• Stable power availability
• Strong real estate ecosystem
• Global enterprise and fintech presence

 India’s National DC Expansion

India’s top 7 cities — Mumbai, Chennai, Delhi NCR, Hyderabad, Bengaluru, Pune, and Kolkata — are driving the expansion. Here’s how:

 Bigger and Smarter Data Centers

India’s DC landscape is evolving toward large-scale hyperscale facilities. The share of data centers larger than 50 MW is projected to grow to nearly two-thirds of total capacity by 2030.

 Global Relevance: Why This Matters

India’s rise in the DC space is not just domestic growth — it’s reshaping the global digital supply chain.
India is now seen as a strategic alternative to data hubs like Singapore and Hong Kong due to:

 Investment Landscape

India’s DC industry has already attracted USD 14.7 billion since 2020 and is poised to draw another USD 20–25 billionthrough 2030, with major players expanding into Tier II & III cities to tap regional digital consumption.

 Sustainability on the Agenda

Green-certified DCs currently account for 25% of the market. This is expected to rise to 30–40% by 2030 as developers shift toward renewable energy, efficient cooling systems, and low-carbon infrastructure.

 Industry Insights

“Mumbai has emerged as the cornerstone of India’s digital infrastructure. With submarine connectivity, skilled talent, and enterprise demand, it leads India’s journey toward becoming Asia-Pacific’s most scalable data center market,”
— Jatin Shah, COO, Colliers India

“The next 5 years will define India’s DC evolution — not just in volume but in quality, sustainability, and global relevance,”
— Vimal Nadar, Head of Research, Colliers India

 Conclusion: India, Powered by Mumbai, Is Now a Global DC Destination

With its unmatched growth trajectory, favorable ecosystem, and strong city-level leadership from Mumbai, India is set to become a global data command center — enabling AI, cloud, fintech, and digital services across the world. This isn’t just about infrastructure — it’s about India’s digital influence on the global economy.

Also Read: India’s Data Centre Market Sees $6.5 Billion Investment Surge, 139% Capacity Growth in a Decade

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