India Becomes a Leading Data Center Market in Asia Pacific
India emerges as data center powerhouse, ranks 2nd in APAC market

Image: Asianet Newsable
India has emerged as the second-largest data center market in the Asia Pacific region, boasting an operational capacity of 1.6 GW and a development pipeline of 3.1 GW. Key cities like Mumbai, Hyderabad, and Chennai are driving this growth, supported by increasing demand for AI and cloud services.
- 01India ranks second in the APAC data center market with 1.6 GW operational capacity.
- 02The country has 3.1 GW of data centers currently under construction or planned.
- 03Mumbai is projected to exceed 1 GW of operational capacity by the end of 2026.
- 04Hyderabad is recognized as the top secondary market in APAC and ninth globally.
- 05The Draft National Data Centre Policy 2025 suggests tax exemptions for up to 20 years to boost growth.
Advertisement
In-Article Ad
India has solidified its position as a major player in the Asia Pacific data center market, ranking second with an operational capacity of 1.6 GW. The Cushman & Wakefield Global Data Center Market Comparison 2026 report highlights that India is also among the top three APAC markets in terms of development pipeline, with 3.1 GW of capacity under construction. Mumbai is the leading city, expected to surpass 1 GW of operational capacity by the end of 2026, while Hyderabad is recognized as the top secondary market in the region. The growth is driven by increasing demand for AI and cloud services, particularly in major cities like Mumbai, Hyderabad, and Pune. India's long-term outlook is bolstered by supportive policies, including the Draft National Data Centre Policy 2025, which proposes significant tax incentives. However, challenges such as transmission losses remain, indicating the need for improved grid efficiency as demand continues to rise.
Advertisement
In-Article Ad
The growth of data centers is expected to enhance India's digital infrastructure and attract foreign investment.
Advertisement
In-Article Ad
Reader Poll
What do you think about India's growth in the data center market?
Connecting to poll...
More about Cushman & Wakefield
Read the original article
Visit the source for the complete story.





