India's Data Centre Capacity To Grow 30% In 2026 Investments May Cross $180 Billion: CBRE

(MENAFN- KNN India) ** New Delhi, Apr 1 (KNN)** Real estate service provider CBRE South Asia has projected a strong expansion in India’s data centre (DC) sector, with total capacity across major cities expected to grow by around 30 percent year-on-year in 2026, supported by an estimated 500 MW of new supply addition.

According to the firm’s India Alternate Sectors Outlook 2026 report, the country’s total data centre capacity had already surpassed 1,700 MW in 2025, driven by a record 440 MW of new supply, marking a 160 percent increase over 2024.

** Investment Momentum Accelerates**

The sector is witnessing significant capital inflows, with cumulative investment commitments reaching USD 126 billion by end-2025. This is projected to rise sharply by around 45 percent year-on-year to exceed USD 180 billion in 2026, reflecting strong investor confidence.

Data centres have now emerged as a mainstream asset class, ranking as the fourth most preferred investment sector in the Asia-Pacific region, with over half of investors expecting price appreciation in 2026.

Anshuman Magazine, Chairman and CEO (India, South-East Asia, Middle East & Africa), CBRE, said the sector has moved beyond early-stage potential to large-scale execution, with foreign capital playing a key role in driving growth.

** Geographic Expansion Beyond Metros**

While leading states such as Telangana, Maharashtra, Andhra Pradesh, Tamil Nadu, and Uttar Pradesh continue to attract the bulk of investments, the report highlights growing interest in tier-II cities.

Cities such as Ahmedabad, Visakhapatnam, Patna, and Bhopal are emerging as new hubs, driven by 5G rollout, demand for low-latency infrastructure, and data localisation requirements.

At present, Mumbai dominates the landscape, accounting for over 50 percent of operational data centre inventory, while key hubs including Delhi NCR, Chennai, and Bengaluru together contribute nearly 90 percent of tier-I capacity.

** Sustainability and Power Demand Challenges**

The report noted that the rapid expansion of AI and cloud infrastructure is placing increasing pressure on power grids, making renewable energy integration a critical component of data centre strategy.

India added a record 44.5 GW of renewable energy capacity in 2025, strengthening the sector’s transition towards sustainable operations.

** Policy Push Driving Growth**

Government initiatives are further accelerating the sector’s growth. Recent policy measures include long-term tax holidays till 2047 for foreign cloud providers using India-based infrastructure, 15 percent safe harbour margin for domestic data centres to ease transfer pricing issues and capital support of 25–35 percent for green technology investments.

These measures are expected to enhance transparency, improve credit access, and attract institutional capital into the sector.

With strong policy backing, rising digital consumption, and increasing global investor interest, India is poised to become one of the fastest-growing data centre markets in the Asia-Pacific region, the report noted.

** (KNN Bureau)**

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