India's Data Centre Boom: A New Age Investment Magnet

India's data centre sector is experiencing significant growth, potentially attracting over USD 54 billion in investment this year. A robust regulatory environment and foreign capital are driving this trend. Major cities like Mumbai and Chennai dominate, while tier-II cities see rising interest. Renewable energy is a critical focus.

The investment allure of India's data centre industry remains strong, with potential commitments exceeding USD 54 billion in the current calendar year, as stated in a CBRE report.

The 'India Alternate Sectors Outlook 2026' by CBRE projects a 30 percent year-on-year boost in India's data centre capacity by 2026, adding an estimated 500 MW of new supply. This follows a significant leap in 2025, where supply additions hit 440 MW, lifting capacity to 1,700 MW.

The report underscores the future growth potential, attributing momentum to factors like 5G expansion and data localisation, which are prompting operators to invest in both tier-I cities like Mumbai and tier-II cities such as Ahmedabad and Patna. Renewable energy emerges as a pivotal strategy to address power grid strains, driven by advancing AI and cloud needs.

(With inputs from agencies.)