India Data Centre Capacity Set to Reach 2 GW by Year-End as 200 MW More Expected in H2 2026

India added about 130 MW of new data centre capacity in the first half of 2026, and more than 200 MW is expected to be added in the second half, putting the country on track to reach 2 GW of operational data centre capacity by year-end.

India Data Centre Capacity to Cross 2 GW by End of 2026

The report from CBRE South Asia Pvt. Ltd. said Mumbai accounted for 94 per cent of new supply in H1 2026, reinforcing its role as the nation’s primary data centre hub.

The sector attracted nearly $38 billion in investment commitments in H1 2026 and cumulative commitments since 2021 reaching approximately $173 billion, of which hyperscale and colocation accounted for close to 62 per cent. Over 15 per cent of cumulative commitments were tied to artificial intelligence‑linked demand, the report added.

“India’s data centre sector continues to scale at a pace few markets in the region can match,” said Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE.

Mumbai Leads India Data Centre Growth

“India’s cumulative investment commitments of over $170 billion, Mumbai’s continued leadership, and a rising share of AI-linked capital all point to a market that is maturing even as it expands. This also reinforces India’s position within Asia Pacific, where data centres remain among investors’ most preferred asset classes,” he added.

The country has advanced from a ‘High Growth Market’ to Asia Pacific’s ‘Leading Data Centre Markets’ category in 2026, joining Japan, Australia and Mainland China. Investor interest in the space remains strong as data centres ranked as the fourth most preferred asset class in CBRE’s 2026 Asia Pacific Investor Intentions Survey.

Tier IV Data Centres and AI Demand Drive Expansion

The report highlighted growing sophistication in sector’s facility mix, with the share of Tier IV data centres in overall supply rising to 43 per cent in H1 2026, up from 21 per cent in 2024. Multi-city portfolios accounted for more than 85 per cent of commitments in H1 2026, while domestic investors continued to hold the largest share of cumulative capital deployed since 2021, at 38 per cent, ahead of the United States at 27 per cent.

Domestic investors held the largest share of cumulative capital deployed since 2021 at 38 per cent, ahead of the United States at 27 per cent, and domestic developers supplied 48 per cent of new capacity in H1 2026, outpacing American and European players.

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