India Ranks Second in Asia Pacific Data Centre Market with 1.6 GW Capacity

Key Facts

• India's operational data centre capacity stood at 1.6 GW as of May 27, 2026.
• India ranks second in the Asia Pacific region by operational capacity.
• The country has 3.1 GW of data centre capacity under construction or planned, placing it in the top three globally by development pipeline.
• Mumbai is the primary data centre market expected to cross 1 GW operational capacity by the end of 2026.
• Secondary markets include Hyderabad (ranked top secondary in APAC and ninth globally), Chennai, Delhi NCR, and Pune.
• Data centre capacity is measured in gigawatts (GW), where 1 GW = 1,000 megawatts (MW).
• India’s data centre density is approximately 943,000 people per MW as of May 2026.

Background & Context

India is emerging as a major growth engine for data centre infrastructure in the Asia Pacific region, supported by a diverse multi-market presence including both primary and secondary cities. This growth is fueled by accelerated AI adoption, expansion of hyperscale cloud services, and rising enterprise demand. Mumbai leads as a primary market, with secondary hubs like Hyderabad gaining prominence. India has a substantial long-term expansion pipeline exceeding 10.5 GW capacity in land acquisition stages. The shift towards digital economy and cloud computing is driving major investments across Indian data centre markets.

Draft National Data Centre Policy 2025

The Draft National Data Centre Policy 2025 proposes incentives such as tax exemptions of up to 20 years for data centre developers, linked to capacity expansion, energy efficiency, and employment generation targets. It also provides GST input tax credits on capital expenditure like construction and IT equipment to reduce investment costs. The policy aims to harmonize state-level regulations through single-window clearances and dedicated economic zones, enhancing ease of doing business. These reforms are expected to stimulate investment and accelerate India's position as a global data centre hub.

Why This Matters for Exams / Exam Relevance

Knowledge of India's ranking in Asia Pacific for data centre capacity, specific figures, leading cities, and government policy initiatives is relevant for current affairs and technology-related questions in competitive exams. Understanding these facts aids comprehension of India's digital infrastructure growth, economic development strategies, and technology adoption trends.

Points to Remember

• Data reference date: May 27, 2026.
• India's APAC operational data centre capacity: 1.6 GW.
• Development pipeline capacity: 3.1 GW, among top three globally.
• Mumbai primary market projected to exceed 1 GW operational capacity by end 2026.
• Hyderabad is the top secondary market in APAC and ranks ninth globally.
• Growth drivers: AI adoption, hyperscale cloud expansion, enterprise demand.
• Draft National Data Centre Policy proposes up to 20 years tax exemption and GST input credits.
• Data centre density approx. 943,000 people per MW.