India’s data centre capacity to hit 2 GW by 2026-end: CBRE

India’s data centre (DC) market is expected to reach 2 GW of total operational capacity by the end of 2026, according to a report by CBRE released on Tuesday. The country added approximately 130 MW of new capacity in the first half of 2026 (H1 2026), with over 200 MW anticipated to go live in the second half.

Mumbai anchored this expansion, accounting for 94 per cent of new supply added in H1 2026. The city reinforced its position as India’s primary DC hub, even as the overall market diversifies.

The sector attracted approximately $38 billion in investment commitments in H1 2026, pushing cumulative commitments since 2021 to around $173 billion. Hyperscale and colocation investments constituted nearly 62 per cent of these cumulative commitments.

Artificial intelligence (AI)-linked demand influenced investment, with over 15 per cent of cumulative commitments from 2021 to H1 2026 tied to AI. This reflects the growing impact of AI on the sector’s investment trajectory.

Anshuman Magazine, chairman and CEO (India, South-East Asia, Middle East and Africa), CBRE, said that India’s data centre sector is scaling at a pace few markets in the region can match. He added that touching 2 GW of installed capacity by year-end would be a significant milestone, highlighting the discipline behind this growth.

India advanced to Asia Pacific’s ‘Leading Data Centre Markets’ category in 2026, joining Japan, Australia, and Mainland China. This reflects the increasing scale, maturity, and strategic importance of its ecosystem. Data centres ranked as the fourth most preferred asset class in CBRE’s 2026 Asia Pacific Investor Intentions Survey.

The market’s growing sophistication is also visible in its facility mix. The share of Tier IV data centres in overall supply rose to 43 per cent in H1 2026, up from 21 per cent in 2024. Multi-city portfolios accounted for over 85 per cent of commitments in H1 2026. Domestic investors held the largest share of cumulative capital deployed since 2021, at 38 per cent, ahead of the United States at 27 per cent.

Domestic developers contributed 48 per cent of new supply added in H1 2026, surpassing American (28 per cent) and European (24 per cent) players. Established micro-markets such as Navi Mumbai and Siruseri (Chennai) continue to see significant activity. These markets benefit from multiple cable landing stations, supportive government policies, and established financial ecosystems.

Ram Chandnani, managing director (leasing services), CBRE India, noted that the strength of India’s data centre supply pipeline reflects sustained demand from BFSI, cloud, hyperscale, and OTT occupiers. While over 80 per cent of India’s operational capacity remains concentrated in Mumbai, Chennai, and Delhi-NCR, incremental supply is expected to extend into secondary hubs such as Hyderabad, Bengaluru, Kolkata, and Visakhapatnam.