India Ranks Second in APAC for Data Center Capacity, Cushman & Wakefield Reports

India has solidified its position as a major player in the Asia Pacific data center market, ranking second with 1.6 GW of operational capacity. The nation is also a significant growth engine, with 3.1 GW of capacity under construction and planned, placing it among the top three APAC markets for development.

The Cushman & Wakefield Global Data Center Market Comparison 2026 report highlights that accelerating AI adoption, hyperscale cloud expansion, and rising enterprise demand are reshaping global data center development. India's ecosystem spans multiple markets, with Mumbai leading as a primary hub expected to exceed 1 GW of operational capacity by the end of 2026. Secondary markets like Hyderabad, Chennai, Delhi NCR, and Pune are also experiencing growth, with Hyderabad ranking as the top secondary market in APAC.

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The global data center sector is moving into a more execution-driven phase of growth, where access to power, infrastructure readiness and delivery capability are becoming as important as demand itself.

Hyperscaler demand is a key driver for expansion across India, particularly in Mumbai, Hyderabad, and Pune. AI workloads and large-scale cloud deployments are increasingly influencing capacity expansion strategies. India's long-term growth is further supported by a substantial development pipeline of over 10.5 GW at the land stage. The market remains underpenetrated, with data center density at approximately 943,000 people per MW, and vacancy declined to 12.9% by Q4 2025.

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India is well positioned within this shift given its combination of strong demand visibility, expanding development pipeline, and growing multi-market ecosystem across both primary and emerging locations.

Policy initiatives, such as the Draft National Data Centre Policy 2025 proposing tax exemptions and GST input tax credits, are bolstering the sector. Improvements in the power ecosystem, evidenced by India's fourth-place global ranking in electricity production growth between 2022 and 2025, also contribute. However, challenges like transmission losses of 14.2% necessitate enhanced grid efficiency as demand escalates.

Gautam Saraf, Executive Managing Director at Cushman & Wakefield, noted that the global data center sector is entering an execution-driven phase where power access, infrastructure readiness, and delivery capability are paramount. He stated that India is well-positioned due to strong demand visibility, an expanding development pipeline, and a growing multi-market ecosystem. Markets capable of scalable deployment, reliable infrastructure, and faster execution are expected to gain momentum.

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As capacity requirements continue to evolve, markets that can support scalable deployment, reliable infrastructure, and faster execution timelines are expected to see stronger long-term momentum.