India data centre capacity to cross 3 GW by 2028: CBRE report
Synopsis
India has crossed into APAC's top-tier data centre league — alongside Japan, Australia, and China — and is the only major market in the region where every key development risk is rated 'low'. With 1,700 MW already live and a 3 GW target by 2028, the country's data centre buildout is accelerating faster than almost any comparable economy.
Key Takeaways
India's data centre stock is projected to exceed 3 GW by end of calendar year 2028 , per CBRE .
Total installed capacity stood at roughly 1,700 MW at end of 2025 , with 500 MW of new supply expected in 2026 .
India has been elevated to APAC's top-tier DC market category, alongside Japan, Australia, South Korea, Mainland China, and Malaysia.
India is the only major APAC market where all key development risks — power, construction, labour, environment — are rated 'low' .
Mumbai leads with over 800 MW live capacity and 750 MW under construction; Chennai , Hyderabad , and Delhi NCR are emerging hyperscale hubs.
Demand is broadening from cloud to Neocloud , GCCs , and enterprise users, sustaining the growth trajectory beyond 2028.
India's data centre (DC) stock is projected to surpass 3 gigawatts (GW) by the end of calendar year 2028, propelled by surging hyperscaler demand, rapidly multiplying artificial intelligence workloads, and the country's structural edge as the Asia Pacific region's most development-friendly DC market, according to a report released on Friday, 29 May 2025 by global real estate consultancy CBRE. The findings mark a significant milestone in India's digital infrastructure trajectory, with total installed capacity already at roughly 1,700 MW at the close of 2025.
Current Capacity and Near-Term Supply
The CBRE report estimates that India's cumulative DC capacity stood at approximately 1,700 megawatts (MW) at the end of 2025, with a further supply addition of around 500 MW expected through 2026. This pipeline underscores the pace at which capital and construction activity are converging on the sector. DC stock, as defined in the report, measures the total computing power infrastructure available across all data centres in a country.
India's Elevation in APAC Rankings
The report places India in APAC's top-tier DC markets — a notable upgrade from its earlier classification as a high-growth market. India now stands alongside Japan, Australia, South Korea, Mainland China, and Malaysia in this leading category, reflecting expanding live capacity, a deep investment pipeline, and a rapidly improving infrastructure ecosystem.
Critically, India is described as the only major APAC market where developmental roadblocks — including power constraints, construction costs, shortage of skilled labour, and community and environmental risks — are rated 'low'. This distinction, the report argues, is a structural competitive advantage that few peer markets can match.
What the CBRE Executive Said
Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East and Africa, CBRE, said: 'The combination of a low-bottleneck development environment, a rapidly expanding digital economy, and aggressive hyperscaler commitments positions India as one of the most compelling DC markets globally.' He added that as AI workloads multiply and the demand base broadens beyond cloud to Neocloud, Global Capability Centres (GCCs), and enterprise users, India's capacity trajectory is 'likely to remain steep well beyond 2028.'
Mumbai Leads; Chennai, Hyderabad, Delhi NCR Emerge
Mumbai continues to anchor national capacity at over 800 MW, with an additional 750 MW under construction or committed, according to the report. Chennai, Hyderabad, and Delhi NCR are identified as the next wave of hyperscale destinations, while Bengaluru retains its position as the primary hub for enterprise colocation demand. This geographic diversification signals that India's DC growth story is no longer a single-city phenomenon.
What This Means for India's Digital Economy
India's rise in DC rankings is not incidental — it reflects deliberate policy tailwinds, including government-backed digital infrastructure programmes and a growing base of multinational corporations setting up GCCs in the country. The broadening demand base, from hyperscalers to enterprise and Neocloud operators, suggests that capacity additions will be absorbed at pace. As the 2028 target approaches, all eyes will be on whether power availability and skilled workforce development keep pace with the construction pipeline.
Point of View
But the more telling detail is the 'low-risk' rating across all development bottlenecks — something no other major APAC market has achieved. The real stress test will come as capacity scales toward 3 GW: power grid reliability and the availability of specialised talent remain structural vulnerabilities that a favourable regulatory environment alone cannot resolve. Mumbai's dominance at 800+ MW also raises concentration risk; the emergence of Chennai, Hyderabad, and Delhi NCR as secondary hubs is necessary, not optional. If India is to sustain this trajectory beyond 2028, the policy focus must shift from attracting investment to ensuring execution infrastructure keeps pace.
NationPress
14 Jul 2026
Frequently Asked Questions
What is India's projected data centre capacity by 2028?
India's data centre stock is projected to cross 3 GW by the end of calendar year 2028, according to a CBRE report released on 29 May 2025. This compares to roughly 1,700 MW of installed capacity at the close of 2025.
Why is India considered APAC's most data centre development-friendly market?
India is the only major Asia Pacific market where all key development risks — power constraints, construction costs, skilled labour shortages, and community and environmental concerns — are rated 'low' by CBRE. This structural advantage, combined with aggressive hyperscaler commitments and a growing digital economy, underpins the ranking.
Which Indian cities are leading data centre growth?
Mumbai anchors national capacity at over 800 MW, with a further 750 MW under construction or committed. Chennai, Hyderabad, and Delhi NCR are emerging as the next hyperscale destinations, while Bengaluru remains the primary hub for enterprise colocation demand.
What is driving demand for data centres in India?
Demand is being driven by hyperscalers, rapidly multiplying AI workloads, and a broadening base of users including Neocloud operators, Global Capability Centres (GCCs), and enterprise clients. The CBRE report notes that this diversification is expected to keep India's capacity trajectory steep well beyond 2028.
How does India rank among Asia Pacific data centre markets?
India has been elevated to APAC's top-tier DC market category, placing it alongside Japan, Australia, South Korea, Mainland China, and Malaysia. This is an upgrade from its previous classification as a high-growth market, reflecting its expanding live capacity and deep investment pipeline.
