India’s Data Centre Capacity May Reach More Than 3 GW by 2028 Amid Cloud and AI Demand: CBRE

India's data centre capacity is to cross 3 gigawatts (GW) by 2028, according to a CBRE report. The country's operational capacity stood at about 1,700 megawatts (MW) at the end of 2025, with another 500 MW of supply likely to come on stream during 2026. 

The report attributed the growth to increasing requirements for data storage, cloud computing, and artificial intelligence-related workloads across sectors. 

Demand Extends Beyond Cloud Providers 

Hyperscalers continue to account for a large share of leasing activity, representing around 50-55% of the market. During the January-March quarter, cloud service providers contracted more than 300 MW of capacity. 

At the same time, demand is being seen from a group of occupiers. These include neocloud operators, semiconductor companies, research and development organisations, Global Capability Centres (GCCs), and enterprise users. 

Neocloud firms, which provide access to high-performance graphics processing units (GPUs), are planning capacity take-up of about 5 MW to 15 MW per site across major Indian cities. 

Mumbai Leads, Other Cities Add Capacity 

Mumbai remains the country's largest data centre market with installed capacity exceeding 800 MW. Around 750 MW is either under construction or at committed stages of development in the city. 

Chennai, Hyderabad, and Delhi-NCR are emerging as major locations for hyperscale projects, while Bengaluru continues to account for a major share of enterprise colocation demand. 

The report also noted growing activity outside the largest markets. Edge facilities are being developed in Jaipur, Ahmedabad and Lucknow, while enquiries for containerised data centres with capacities of 8 MW to 10 MW have increased. 

Regional Investment Reaches Record Level 

Across the Asia-Pacific region, data centre investment reached $11.6 billion in 2025, the highest level recorded so far. Entity-level transactions involving platforms and operating companies totalled $8.3 billion during the year. 

The report noted that operators are increasingly using capital recycling and fund management structures as they expand their portfolios and raise funding for new developments. 

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Conclusion 

The sector is witnessing continued investment and capacity additions as cloud, AI and enterprise computing needs increase. According to CBRE, India's operational data centre capacity could exceed 3 GW by the end of 2028. 

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