India ranks second in APAC as data center operational capacity hits 1.6 GW: Cushman & Wakefield

New Delhi [India], May 27 (ANI): India ranks second in Asia Pacific (APAC) markets with 1.6 GW operational capacity, establishing itself as a significant growth engine for digital infrastructure in the region. The country also features among the top three APAC markets by development pipeline, with 3.1 GW under construction and planned.
According to the Cushman & Wakefield Global Data Center Market Comparison 2026 report, accelerating AI adoption, hyperscale cloud expansion, and rising enterprise demand continue to reshape global data center development patterns.
The report noted that India's data center ecosystem relies on a multi-market presence, with Mumbai, Hyderabad, Chennai, Delhi NCR, Pune, and Bengaluru included in the assessment.
Mumbai anchors India's position as a primary market in Asia Pacific and is expected to surpass 1 GW of operational capacity by the end of 2026. Growth is also increasingly supported by secondary markets such as Hyderabad, Chennai, Delhi NCR, and Pune.
Hyderabad ranks as the top secondary market in Asia Pacific and ninth globally, underscoring its prominence. Bengaluru is positioned as a tertiary data center market within the regional landscape. Hyperscaler demand remains a key driver of expansion across India, particularly in Mumbai, Hyderabad, and Pune.
As per the report, AI workloads and large-scale cloud deployments increasingly influence capacity expansion strategies. India's growth is reinforced by the scale of its long-term expansion pipeline, with over 10.5 GW of capacity remaining at the land stage. The market remains structurally underpenetrated, with data center density at approximately 943,000 people per MW, while vacancy declined to 12.9 per cent as of Q4 2025.
India's long-term outlook is supported by policy and infrastructure developments. The Draft National Data Centre Policy 2025 proposes tax exemptions of up to 20 years along with GST input tax credits on capital expenditure. This is complemented by power ecosystem improvements, as India ranked fourth globally in electricity production growth between 2022 and 2025. However, transmission losses remain at 14.2 per cent, highlighting the need for grid efficiency as demand scales.
"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," said Gautam Saraf, Executive Managing Director, Mumbai & New Business, Cushman & Wakefield.
"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. 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," Saraf added. (ANI)

(This article was generated from news agency ANI without modifications to the text.)