India is expected to have a data centre capacity of around 2,070 megawatts (MW) by the close of 2025. The existing data centre capacity is approximately 1,255 MW, with close to 475 MW of capacity being built in Mumbai, Chennai, and the Delhi-National Capital Region (NCR).

According to a report by CBRE, a real estate consultancy, total investment pledges in Indian data centres are expected to exceed $100 billion by the close of 2027. From 2019 to 2024, India secured investment commitments totaling $60.3 billion from investors, both local and foreign.

Moreover, in 2024 to date, roughly $19 billion in investments have been pledged. Maharashtra, Tamil Nadu, Telangana, Uttar Pradesh, and West Bengal stood out as the top states for total investment commitments. The year could conclude with India's data centre capacity increasing to 1,600 MW.

According to the report, Mumbai still leads in data centre inventory, with Chennai, Delhi-NCR, and Bengaluru next in line, making up 90 percent of the nation’s overall data centre inventory as of September 2024.

At present, India's overall data centre inventory is approximately 19 million square feet (msf) of space, projected to grow to 31 msf by the close of 2025. Major demand factors for the upcoming year consist of banking, financial services, insurance (BFSI), and technology firms.