India’s data centre sector is poised for massive growth, with investments worth over $54 billion (approximately ₹5 lakh crore) expected in 2026, according to a report by real estate consultancy CBRE. The surge is likely to significantly transform the country’s digital infrastructure and strengthen its position as a global data hub.

Rapid Growth in Capacity
In its report titled India Alternate Sectors Outlook 2026, CBRE projected a 30 percent year-on-year increase in data centre capacity across major Indian cities. Around 500 megawatts of new supply is expected to be added in 2026.

The sector has already witnessed strong momentum. In 2025, India’s total data centre capacity reached 1,700 megawatts, driven by a record addition of 440 megawatts during the year.

Investment Momentum Continues
The report highlighted that investment commitments in 2025 alone stood at $56.4 billion, pushing the cumulative total to $126 billion. This figure is expected to grow by nearly 45 percent in 2026, potentially crossing $180 billion.

Anshuman Magazine, Chairman and CEO of CBRE for India, Southeast Asia, the Middle East, and Africa, said the sector’s growth is no longer limited to capacity expansion but is now focused on large-scale implementation.

Foreign Investment Driving Expansion
Foreign capital is playing a crucial role in the sector’s rapid expansion. Investors are increasingly attracted by the strong growth potential and promising returns offered by India’s data centre market.

The growth is also being supported by a robust regulatory framework, which enhances transparency and improves access to financing, making the sector more investor-friendly.

Government Push Through Semiconductor Plans
The government is further boosting the digital ecosystem through initiatives like the proposed Semicon 2.0 programme. Reports suggest that a budget allocation of ₹1.25 lakh crore has been approved for the initiative, although official confirmation is still awaited.