India's Data Center Capacity Surpasses 1.5 GW: A New Era of Digital Infrastructure

India has reached a major milestone in its technology journey. According to the latest findings, India’s data centre capacity crosses 1.5 GW as Mumbai leads, marking a strong shift toward large-scale digital growth. With cloud services, OTT platforms, AI tools, and online enterprises expanding every year, the need for strong digital infrastructure has never been higher. The newest industry data clearly shows that the country is moving fast toward global competitiveness.

The demand for secure and reliable digital storage is increasing every month, and the new capacity numbers make this very clear. As per industry updates, data centre India has crossed the 1.5 GW capacity mark for the first time. This growth reflects how rapidly businesses, government systems, and digital services are expanding across the country. The surge in digital transactions, remote working, online education, content streaming, and AI-led applications has pushed the market to grow faster than expected.

Among all major cities, Mumbai leads data centre capacity with an impressive 53% share. The CBRE report shows Mumbai holds 53% of India’s data centre market, making it the most dominant destination for large data centre investments. Factors like reliable power supply, global connectivity, strong fibre networks, and the presence of financial and IT institutions have made the city a natural hub for digital activity. The coastal advantage also ensures easy submarine cable connectivity, which supports faster data movement worldwide.

There are several reasons why Mumbai is far ahead of other Indian cities in this segment. The city has a long-established digital ecosystem, hosting some of the earliest data facilities in the country. The new CBRE India data centre report 2025 highlights that large-scale operators prefer Mumbai because of:

Strong international cable landing stations Higher network reliability Availability of large commercial spaces Skilled workforce High demand from BFSI and media sectors

These factors continuously attract global and domestic investors, ensuring consistent data centre expansion in Mumbai.

The India data centre market growth trend is supported by rising technology adoption across sectors. Companies are shifting their operations to the cloud, and government departments are digitising their records. E-commerce, fintech, gaming, and social media platforms also require massive storage space to run smoothly.

The latest update on India data centre growth and infrastructure shows that several new facilities are under construction in top cities. With digital usage rising in Tier 1 and Tier 2 cities, the demand for data services is set to grow further in 2026 and beyond.

While Mumbai is the clear leader today, the country’s progress is not limited to one region. New investments are flowing into markets such as Hyderabad, Chennai, Pune, and Noida. According to analysts, India’s data centre expansion is driven by Mumbai and Hyderabad, as both cities offer affordable land parcels, strong industrial ecosystems, and dedicated support from state governments.

Hyderabad, in particular, has become a favourite among developers due to its lower operating costs, excellent infrastructure, and growing tech presence. Together, these cities are shaping India’s strong digital backbone.

The CBRE report gives deep insight into how fast and how widely the industry is growing. The findings confirm that India has become a highly preferred market for global data centre operators. The CBRE India data centre report 2025 mentions rapid expansion in both hyperscale and colocation facilities, influenced by high cloud adoption.

The report also highlights a major rise in pre-committed spaces by large enterprises. This shows that businesses are planning their digital infrastructure requirements much earlier and more strategically than before.

The growth of the digital ecosystem has had a major effect on commercial real estate India. Data centres require large, high-quality industrial-grade spaces with specialised cooling, power, and fibre systems. As capacity increases, developers are designing new parks and buildings specifically for this sector.

This shift is pushing new investments into industrial zones and underdeveloped areas, improving employment opportunities and supporting long-term economic growth. In the next five years, the sector is expected to attract billions of dollars in fresh investments.

Based on the latest India data centre infrastructure update, the country is set for even faster expansion between 2025 and 2028. Several global operators are entering partnerships with Indian firms to build hyperscale campuses that will serve cloud, AI, and enterprise workloads.

Power efficiency, renewable energy usage, and sustainability will play a bigger role in upcoming developments. Many new facilities are expected to integrate solar power, battery storage, and green cooling systems. With the country crossing 1.5 GW already, India is now preparing to become one of the world’s largest digital infrastructure markets.

India’s digital ecosystem has reached an important milestone as India’s data centre capacity crosses 1.5 GW as Mumbai leads, driven by strong demand for cloud and digital services. The CBRE report shows Mumbai holds 53% of India’s data centre market, while cities like Hyderabad are emerging fast. The latest update on India data centre growth and infrastructure confirms rapid nationwide expansion. With rising investments and stronger connectivity, India is entering a new phase of digital readiness, shaping the future of technology and business for the entire nation.