India Becomes Second-Largest Asia-Pacific Data Center Market

India has emerged as the second-largest data center market in the Asia-Pacific region, achieving 1.6 GW of operational capacity. According to the Cushman & Wakefield Global Data Center Market Comparison 2026 report, the country maintains a significant development pipeline with 3.1 GW under construction or planned and more than 10.5 GW at the land stage.

Gautam Saraf, Executive Managing Director at Cushman & Wakefield, noted that the global sector is transitioning into an execution-driven growth phase where infrastructure readiness and power access are critical. Growth in India is currently fueled by hyperscale cloud expansion, enterprise demand, and the adoption of artificial intelligence.

Mumbai remains the primary hub and is projected to exceed 1 GW of capacity by the end of 2026. Other key cities include Hyderabad, which ranks as the top secondary market in Asia-Pacific and ninth globally, as well as Chennai, Delhi-NCR, and Pune. The Government of India is supporting this trajectory through the Draft National Data Centre Policy 2025, which proposes tax exemptions for up to 20 years and GST input tax credits.