India has emerged as the second-largest data centre market in the Asia Pacific region, marking a major milestone in the country’s fast-expanding digital economy. The development reflects India’s growing importance as a global technology hub and its rising appeal for large-scale infrastructure and data-driven investments.
According to a report by Cushman & Wakefield cited by the India Brand Equity Foundation (IBEF), India’s data centre capacity has grown rapidly over recent years. This expansion has been fueled by strong demand for cloud services, artificial intelligence applications, and the increasing use of data-intensive technologies across industries.
The report highlights that India’s competitive operating environment, combined with relatively lower operational costs and strong policy support, has made it a preferred destination for global data centre operators. Rising digital consumption, expanding internet access, and regulatory frameworks promoting data localisation have further strengthened this growth trajectory.
Key metropolitan cities including Mumbai, Chennai, Hyderabad, Bengaluru, and Delhi-NCR have become major hotspots for data centre investments. These regions continue to attract hyperscalers, global cloud providers, and enterprise-level customers seeking scalable and reliable infrastructure to support their digital operations.
India is also positioning itself as an emerging hub for artificial intelligence-driven infrastructure. A large base of skilled technology professionals, along with increasing demand for high-performance computing systems, is supporting the country’s transition toward advanced digital capabilities.
The sector is additionally benefiting from growing investments in renewable energy, power reliability, and improved connectivity infrastructure. These factors are making large-scale data centre development more sustainable and efficient, further boosting investor confidence.
As businesses across sectors such as finance, healthcare, manufacturing, and e-commerce accelerate their adoption of cloud-based solutions and AI tools, demand for secure and high-capacity data storage is expected to rise significantly. This trend is likely to drive continued expansion in the data centre industry over the coming years.
India’s position as the second-largest data centre market in Asia Pacific underscores its evolving role in the global digital ecosystem. With strong fundamentals and sustained investment momentum, the country is expected to strengthen its position as a leading destination for digital infrastructure and technology innovation in the near future.
