Mumbai, Hyderabad Lead Growth as India Becomes Asia Pacific’s Second-Largest Data Centre Market

India has become the second-largest data centre market in the Asia Pacific region with capacity of 1.6 GW, according to a report released by Cushman & Wakefield.  

The country also has 3.1 GW of capacity under construction and planned, placing it among the region’s largest upcoming markets. The study covered 107 global markets and examined factors such as power availability, real estate, infrastructure, regulation and development activity.  

It noted that rising use of artificial intelligence, cloud computing and enterprise digital services is increasing demand for data centre capacity across regions. 

Mumbai and Hyderabad Lead Activity 

Mumbai remains India’s largest data centre market and is to cross 1 GW of operational capacity by the end of 2026. The city was listed among the faster-growing markets in Asia Pacific in the report. 

Hyderabad ranked as the top secondary market in Asia Pacific and ninth globally among secondary markets. Chennai, Pune, and Delhi NCR are also recording higher levels of investment and project development.  

Bengaluru was classified as a tertiary market in the regional data centre network. The report also referred to emerging locations such as Vizag, where future infrastructure linked to AI is being explored. 

Pipeline and Occupancy Levels 

India has more than 10.5 GW of planned data centre capacity at the land acquisition stage, showing expansion by operators and developers. The report stated that India’s data centre density remains relatively low at around 943,000 people per MW. 

Vacancy levels declined to 12.9% in the fourth quarter of 2025, indicating continued occupancy growth despite fresh supply entering the market. Demand from hyperscale cloud companies remains concentrated in Mumbai, Hyderabad and Pune. 

Asia Pacific Vacancy Falls 

Across the Asia Pacific region, operational data centre inventory increased by more than 1.5 GW during the year, a 13% rise in total capacity. 

At the same time, vacancy levels across the region fell from 12.4% to 10.9%. The report stated that a large share of projects under construction has already been pre-leased, mainly by cloud and AI-related businesses. 

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Conclusion  

The report highlighted growth in India’s data centre sector, with operational capacity rising alongside a large upcoming pipeline. Demand from digital infrastructure and cloud services continues to support market activity. 

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