India’s data centre sector is attracting a new wave of investments from global technology companies, infrastructure funds and telecom operators, reinforcing the country’s position as one of the fastest-growing digital infrastructure markets in Asia Pacific.
According to the CBRE 2026 Asia Pacific Data Centre Trends & Outlook Report, investment sentiment remains strong, with substantial capital commitments flowing into data centres, cloud infrastructure and AI-driven facilities across the country.
Capital flows into new development projects
CBRE notes that the country’s market remains largely development-led, with investors focusing on new campuses, build-to-suit projects and self-built facilities rather than acquisitions of stabilised assets. The report attributes this trend to India’s broader digitalisation story, supported by government initiatives, continued growth in online commerce and the rapid expansion of digital payments.
Artificial intelligence is emerging as a major catalyst for future demand. Beyond driving occupancy, AI workloads are increasing rack densities, creating demand for advanced cooling systems and pushing operators to build more sophisticated infrastructure.
Tech giants place big bets on India
Several major projects announced over the past year underline growing investor confidence. Among the most notable is Google’s planned 1GW AI data centre campus in Visakhapatnam, being developed alongside partners AdaniConnex and Airtel Nxtra. According to CBRE, the project is expected to be commissioned by 2028. Meanwhile, Amazon Web Services (AWS) is planning a new data centre campus in Navi Mumbai with a capacity of 473MW.
The report also highlights collaboration between Tata Consultancy Services (TCS), its subsidiary HyperVault and AMD to develop an AI-ready data centre blueprint based on AMD’s Helios platform. The initiative is expected to support India’s national AI ambitions with infrastructure capacity of up to 200MW.
Telecom and infrastructure investors expand
Airtel Nxtra has also accelerated expansion plans after securing a $1 billion investment commitment. The company aims to increase its data centre capacity from around 300MW today to 1GW over the coming years. Private capital is also becoming increasingly active. In April 2026, Blackstone consolidated its Indian data centre portfolio by integrating Lumina CloudInfra into hyperscale platform AirTrunk, aligning the business with AirTrunk’s global operations.
Mumbai remains the centre of gravity
Mumbai continues to dominate India’s data centre landscape, accounting for more than half of the country’s operational capacity and remaining the preferred destination for hyperscalers and enterprise customers. According to CBRE, Mumbai’s total data centre capacity has crossed 800MW, while another 750MW is expected to come online in the pipeline. National capacity could approach 3GW in the medium term as projects currently under construction are completed.
AI and Neocloud create the next growth chapter
CBRE expects AI, high-performance computing and the emergence of Neocloud providers to become the next major demand drivers for India’s data centre industry. As global cloud companies, telecom operators and infrastructure investors continue deploying capital, India appears well positioned to become one of the region’s most important destinations for digital infrastructure investment.
