India Data Centre Capacity Surges 59% As Hyperscalers Drive Massive Demand

Operational capacity is projected to exceed 7 GW IT by 2030, supported by $90 billion in investment.

The Bottom Line

•Data centre capacity grew 59% in H1 2026, with hyperscalers driving 80% of demand.
•Expect continued rapid expansion as $90 billion in total investment flows into the sector.

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[Capacity Expansion]:

India's data centre sector witnessed a massive 59.3% year-on-year increase in new capacity additions, reaching 258 MW IT in the first half of 2026. Total operational stock expanded by 36.6% to 1,819 MW IT, reflecting the country's growing status as a critical hub for digital infrastructure in the Asia-Pacific region.

[Demand Drivers]:

Absorption of data centre space rose by 31.1% to 278 MW IT, with hyperscalers accounting for over 80% of the total demand. Mumbai remains the primary market, capturing 38% of total absorption and 55% of new capacity additions. This concentration highlights the city's strategic importance for global tech giants seeking proximity to major enterprise and consumer markets.

[Future Outlook]:

The sector is poised for sustained growth, with operational capacity projected to exceed 7 GW IT by 2030. This expansion is supported by significant investment commitments from global leaders like Amazon Web Services, Microsoft, and Google, totaling approximately $67.5 billion. With an overall investment pipeline estimated at $90 billion, the data centre boom is set to provide the foundational compute power necessary for India's rapidly evolving digital economy and AI-driven future.

Pulse Intelligence

^{Context & Impact}

Context & Background

Data centre capacity in H1 2025 stood at 162 MW IT before the current surge.
Hyperscalers have consistently been the primary drivers of data centre demand in India over the last two years.
Mumbai has historically been the leading location for data centre infrastructure due to its connectivity and power availability.

Key Consequences

Increased data centre capacity will lower latency for digital services and cloud-based applications across India.
Real estate and power utility sectors will see sustained demand as new facilities are constructed.
India's attractiveness for global cloud service providers will likely increase as infrastructure scales toward 7 GW.

Market & Economic Impact

Not applicable.

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