India’s data centre market is expected to reach 2 GW of operational capacity by the end of 2026, according to a report by CBRE. The market added approximately 130 MW of new capacity in the first six months of 2026, with more than 200 MW expected to go live in the second half of the year.
Mumbai accounted for 94% of all new supply added in the first half of 2026, driving the expansion. The report highlighted that the supply infusion is supported by sustained capital inflows, with the sector attracting approximately $38 billion in investment commitments in the first half of 2026.
Cumulative commitments since 2021 have reached around $173 billion, with hyperscale and colocation investments accounting for close to 62% of these commitments. Artificial intelligence-linked demand represented more than 15% of the cumulative commitments.
Anshuman Magazine, Chairman and CEO of CBRE, stated that India’s data centre sector continues to scale at a pace few markets in the region can match. He noted that touching 2 GW of installed capacity by the end of the year would be a significant milestone, highlighting the discipline behind this growth.
The share of Tier IV data centres in overall supply rose to 43% in the first half of 2026, up from 21% in 2024. Multi-city portfolios accounted for over 85% of commitments during the same period. Ram Chandnani, Managing Director of Leasing Services at CBRE India, said the strength of India’s data centre supply pipeline reflects the sustained demand from BFSI, cloud, hyperscale, and OTT occupiers.
India advanced from a ‘High Growth Market’ to Asia Pacific’s ‘Leading Data Centre Markets’ category in 2026, alongside Japan, Australia, and Mainland China. As the market scales towards 2 GW, growth is expected to extend into emerging hubs such as Hyderabad, Bengaluru, Kolkata, and Visakhapatnam, supported by improving infrastructure and state-level incentives.