Mumbai, March 2026 – India’s data centre sector has emerged as one of the most consequential new real estate asset classes in the country, with total installed capacity reaching approximately 1.3 GW as of mid-2025 and an additional 2.9 GW of supply expected by 2030, according to a Cushman & Wakefield report. The market attracted over $14 billion in investments between 2020 and 2025, with foreign institutional investors contributing around 86% of that total and a further $20-25 billion is projected to flow into the sector by 2030.
A new development model is gaining ground, fully pre-built, plug-and-play data centre cities that offer ready power, cooling, and fibre connectivity infrastructure, enabling occupiers to begin operations without delay. Traditional real estate developers including Hiranandani Group’s Yotta Infrastructure, Anant Raj, Prestige, and Panchshil Realty are pivoting from homes and offices to position themselves as digital asset landlords.
Mumbai Leads, But Geography Is Rapidly Diversifying
Mumbai, particularly Navi Mumbai, currently accounts for approximately 54% of India’s total data centre capacity, benefiting from submarine cable landing stations, financial sector demand, and established fibre infrastructure. However, rising costs and capacity constraints in metros are pushing expansion into Tier II cities. Ahmedabad, Kochi, Visakhapatnam, Jaipur, and Bhubaneswar are emerging as edge computing nodes, offering cheaper land, improving connectivity, and access to expanding consumer bases.
The scale of this geographic shift is underscored by two landmark commitments: Google’s planned 1 GW facility in Visakhapatnam and Reliance’s AI-ready data centre development in Jamnagar.
What the Numbers Mean for Real Estate
By end of 2027, the industry projects total capacity to reach 2,073 MW, requiring approximately 10.7 million sq ft of real estate and an estimated $6.3 billion in capital investment. By 2030, data centre real estate demand is projected to exceed 55 million sq ft nationally with a significant share dedicated to large hyperscale campuses exceeding 50 MW capacity.
The primary structural challenge remains regulatory complexity: data centre projects currently navigate over 30 approvals across agencies. The Draft National Data Centre Policy proposes single-window clearances and dedicated Data Centre Economic Zones measures that, if implemented it could materially accelerate project timelines and deepen India’s position as a global digital infrastructure hub.
