India’s Data Centre Capacity More Than Doubles in 2025

India recorded a significant surge in data centre capacity additions in 2025, with new supply more than doubling to 387 MW IT, compared to 191 MW IT in 2024—a year-on-year growth of 103%, according to a newly released report.

Demand Continues to Grow
On the demand side, data centre absorption rose to 427 MW IT in 2025, up from 407 MW IT in 2024, registering a 5% annual increase.

Mumbai and Chennai Lead the Market

• Mumbai and Chennai together accounted for nearly 70% of total absorption.
• Growth was primarily driven by hyperscale operators, supported by:
  • Rapid cloud adoption
  • Expansion of artificial intelligence (AI) workloads
  • 5G rollout
  • Rising Internet of Things (IoT) usage

Operational Capacity Expands Rapidly
The surge in new additions pushed India’s operational data centre stock to 1,520 MW IT, marking a 34% increase over the previous year.

• Mumbai: 34% of operational supply
• Delhi-NCR: 20%
• Chennai: 19%

Market Dominated by Hyperscalers
Hyperscale data centres continue to drive market expansion, backed by:

• Global hyperscalers
• Domestic cloud service providers
• Institutional investors

Meanwhile, enterprise colocation demand remains steady, and edge data centres are gaining traction in Tier 2 and Tier 3 cities.