India's Data Centre Sector Attracts $173 Billion in Investments

India’s data centre industry has seen robust growth, accumulating approximately $173 billion in investment commitments since 2021. This surge reflects strong confidence among investors, spurred by rising cloud adoption and demand for artificial intelligence, as reported by the real estate consultancy CBRE on Tuesday.

In the first half of 2026 alone, the sector added around 130 megawatts of new capacity, with projections indicating an additional capacity of over 200 megawatts expected to be online in the latter half of the year. This report, titled ‘Beyond Growth: India’s Rise Among APAC’s Leading Data Centre Markets,’ highlights a significant trend towards investing in data infrastructure in the region.

The January to June period of this year accounted for approximately $38 billion in commitments, with hyperscale and co-location projects comprising nearly 62 per cent of the total investments made since 2021. Notably, over 15 per cent of these commitments have direct ties to artificial intelligence, underscoring the technology's increasing impact on the sector.

Anshuman Magazine, Chairman and CEO for India, South-East Asia, Middle East and Africa at CBRE, stated, “India’s data centre sector continues to scale at a pace few markets in the region can match.” He added that approaching 2 gigawatts of installed capacity by the end of this year would signify a remarkable achievement for the market.

Further, he emphasised the discipline exhibited in this growth trajectory, noting that the over $170 billion in cumulative investment commitments, along with Mumbai’s ongoing dominance and a growing focus on AI-linked investments, reflects a maturing sector that is expanding effectively.

CBRE also noted that this consistent inflow of capital strengthens India's standing as one of the leading data centre markets in the Asia-Pacific region. The firm anticipates that this trajectory will continue, providing ample opportunities for further expansion and development in India's digital infrastructure.