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.