India Becomes Asia Pacific’s Second-Largest Data Center Market

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NEW DELHI — India has become the second-largest data center market in the Asia-Pacific region, with 1.6 gigawatts of operational capacity, according to a new report from Cushman & Wakefield.

The country is also among the region’s top three markets by development pipeline, with 3.1 gigawatts of data center capacity under construction or planned.

India is emerging as one of Asia Pacific’s most important growth markets for digital infrastructure as artificial intelligence adoption, hyperscale cloud expansion and rising enterprise demand reshape global data center development, the report said.

India’s data center ecosystem spans several major markets, with Mumbai, Hyderabad, Chennai, Delhi-NCR, Pune and Bengaluru included among the 107 global markets evaluated by Cushman & Wakefield.

“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 at Cushman & Wakefield.

India is well positioned for that shift because of its demand visibility, expanding development pipeline and growing data center ecosystem across both primary and emerging markets.

“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 said.

Mumbai remains India’s primary data center market and continues to play a central role in regional expansion. The city is among the fastest-growing markets in Asia Pacific and is expected to surpass 1 gigawatt of operational capacity by the end of 2026.

Secondary markets including Hyderabad, Chennai, Delhi-NCR and Pune are also seeing increased investment and development activity, according to the report.

Hyderabad was identified as the top secondary market in Asia Pacific and ranked ninth globally, underscoring its growing role in the data center sector. Bengaluru was classified as a tertiary data center market in the regional landscape.

India’s long-term growth is further supported by more than 10.5 gigawatts of capacity at the land stage, reflecting strong future development potential as operators secure sites and prepare for sustained demand.