Inside India’s Data Centre Real Estate Boom: Power Availability, Land Readiness, and Regulatory Drivers
Overall source: https://www.cbre.co.in/insights/reports/india-s-data-centre-market-in-a-new-era
India’s Data Centre real estate landscape is entering a defining phase. The country now offers one of the most compelling environments globally for operators, cloud providers, and enterprises seeking scalable digital infrastructure. For global enterprises and multinational corporations planning to establish a Data Centre in India, the question is shifting from “Why India?” to “Where and how fast can we build?”
A powerful mix of power availability, ready land banks, regulatory momentum, and rising data centre demand in India is reshaping investment decisions—supported by strong multi-city growth documented in recent CBRE research. India’s total DC stock surpassed 1.5 GW in 2025, growing 30% in a single year, signalling an industry entering a scale era comparable to established APAC hubs.
Why Is India Becoming a Global Data Centre Powerhouse?
How Does India Compare to Other APAC Data Centre Markets?
India now rivals major APAC markets with competitive Data Centre real estate costs, attractive operating models, and strong submarine cable connectivity. According to CBRE data, construction costs remain significantly lower than Japan, Singapore, and Australia while power availability is rapidly expanding in leading and emerging hubs.
What Is Driving the Rapid Rise in Data Centre Demand in India?
India’s digital economy—fuelled by AI, cloud computing, 5G, and IoT—is pushing data centre demand in India into its fastest-ever growth phase. The surge in internet penetration and data usage has been exponential across sectors.
Think of India’s DC ecosystem like a fast-growing metropolis: highways (fiber networks) are expanding, population (data traffic) is exploding, and new districts (DC parks and clusters) are developing at speed.
Why Is Power Availability the Most Critical Factor in Data Centre India Strategy?
For global operators, power readiness is the #1 driver in Data Centre India site selection. Across top cities, stable high-capacity power is being provisioned with growing renewable integration.
Power snapshot from major hubs
| City | Installed / Planned Power | Key Strength |
| Mumbai | ~56 GW state capacity | Highest subsea connectivity, ideal for hyperscalers |
| Chennai | ~44 GW | Second-largest subsea landing hub; strong resilience |
| Delhi-NCR | ~7 GW | Rapidly expanding fiber network for edge deployments |
| Bengaluru | ~36 GW | Tech ecosystem and BFSI-driven workloads |
The spread of power capacity enables diverse build models, from hyperscale campuses, to multi-story colocation facilities, making India a future-ready environment for Data Centre infrastructure growth.
See also: How to Protect Your Business From Cyberattacks in 2025
How Is Land Readiness Shaping Data Centre Real Estate Decisions in India?
Understanding Data Centre land requirements
Data centre land requirements in India vary by tier, design, power density, and ESG factors. Investors now seek:
- Large contiguous land parcels (5–50 acres)
- Proximity to substations and fiber routes
- Low flood risk and stable soil conditions
- Access to skilled workforce for 24/7 operations
Established hubs like Mumbai and Chennai offer strong proximity to cable landing stations, while Bengaluru, Hyderabad, Pune, and Kolkata provide cost-beneficial alternatives with accelerating DC-ready zoning.
Which Emerging Cities Offer the Best Future Land Availability for Data Centres?
CBRE highlights Hyderabad’s 14% share of future DC stock, Bengaluru’s steady growth, and Pune/Kolkata’s expansion into Tier 1.5 hubs driven by power and land economics..
Enterprises evaluating site selection in India increasingly rely on data-backed heatmaps—capacity, regulations, workforce, and connectivity—to fast-track feasibility.
How Are Government Regulations Accelerating India’s Data Centre Growth?
What Policy Changes Are Making It Easier to Build Data Centres in India?
Multiple government layers, including central, state, and regulatory, are enabling faster Data Centre rollout through:
- Infrastructure status for Data Centres (reduces financing costs)
- Incentives on land, power tariffs, and stamp duty across states
- Data localisation mandates encouraging in-country processing
- Accelerated approvals in designated DC zones or industrial corridors
The Digital Personal Data Protection Bill amplifies future Data Centre infrastructure requirements by encouraging enterprises to store and process sensitive data locally.
Investment confidence
India attracted USD 30 billion in cumulative DC commitments by 9M 2025, led by global investors, hyperscalers, and real estate developers. Telangana, Maharashtra, TN, and West Bengal are among the top beneficiaries.
What Are The Best Locations for Data Centres in India: A Quick Guide
Established hubs
- Mumbai – India’s DC capital; unmatched connectivity and demand concentration
- Chennai – Subsea gateway to Southeast Asia; highly resilient
- Delhi-NCR – Scalable power and future-ready for edge nodes
- Bengaluru – Ideal for BFSI, tech, and innovation workloads
Emerging hubs
- Hyderabad – Competitive power, strong policies, hyperscaler momentum
- Pune & Kolkata – Land-efficient, cost-effective for multi-facility scaling
These insights directly support organisations asking: “How to set up a Data Centre in India?” The right decision begins with correlating power availability, land readiness, and regulatory incentives to long-term digital strategies.
How to Approach Data Centre Site Selection in India (Clear 5-Step Framework)
- Define capacity and workload objectives
Align hyperscale, cloud, or enterprise needs with demand forecasts. - Assess power and redundancy models
Consider substations, grid reliability, and renewable opportunities. - Evaluate Data Centre land requirements
Include environmental risk, buildability, and expansion potential. - Review regulatory and incentive landscapes
State policies significantly impact cost curves and timelines. - Run scenario modelling with a partner like CBRE
Compare city clusters, OPEX, CAPEX, and long-term total cost of ownership.
FAQ: Quick Answers for Global Expansion Teams
What are the main requirements to set up a Data Centre in India?
Reliable power availability, DC-ready land, strong fiber access, and compliance with local regulations.
Which are the best locations for Data Centres in India?
Mumbai and Chennai for connectivity; Hyderabad, Pune, and Kolkata for cost-efficient scaling.
Why is Data Centre demand in India rising so fast?
Mass adoption of cloud, AI workloads, 5G, and national-scale digitisation initiatives.
How does CBRE support Data Centre site selection in India?
Through power/land assessments, cost modelling, regulatory analysis, and end-to-end DC development advisory.
Conclusion: The Time to Build in India Is Now
India has entered a transformative phase of Data Centre real estate development—driven by power, land readiness, and supportive regulations. For global enterprises, the opportunity lies in acting early, selecting the right city cluster, and leveraging deep-location intelligence to stay ahead of demand cycles.
As one of the world’s most experienced Data Centre advisors, CBRE brings end-to-end capabilities across site selection, power and land due diligence, cost benchmarking, design advisory, and development management. Our on-ground intelligence across India’s established and emerging markets enables enterprises to de-risk decisions, accelerate build timelines, and scale with confidence.
For organisations planning their next phase of infrastructure expansion, there has never been a better moment, or a more prepared partner, to help unlock India’s full Data Centre potential.
