India's Data Centre Industry to Add 604 MW by 2026, Fueled by AI and 5G Growth India's DC capacity reached 917 MW with an impressive 873 MW occupancy, reflecting a robust 24 per cent compound annual growth rate (CAGR) over the last four-and-a-half years.
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India's data centre (DC) industry is set to witness unprecedented growth, driven by advancements in artificial intelligence (AI) and the nationwide expansion of 5G networks. According to JLL India, the sector is poised to add 604 MW of capacity between H2 2024 and 2026, underlining the country's ascent as a global hub for AI innovation and data infrastructure development.
"India is rapidly establishing itself as a global centre for AI innovation and data centre growth," said Rachit Mohan, APAC Lead - data centre leasing at JLL. He highlighted that hyperscalers are increasingly pursuing self-build projects in major hubs, while operators are investing in advanced campuses powered by 400 kVA lines to support AI clusters. "Navi Mumbai, a satellite city near Mumbai, is emerging as a key data centre location, with potential demand expected to reach 800 MW in next few years," he said in a media release.
This growth is reinforced by tight market conditions, as by mid-2024, India's DC capacity reached 917 MW with an impressive 873 MW occupancy, reflecting a robust 24 per cent compound annual growth rate (CAGR) over the last four-and-a-half years. The sector's rapid expansion is further propelled by key government initiatives, including a USD 1.24 billion investment in AI infrastructure, and the widespread rollout of 5G, which covered 90 per cent of the population by the end of 2023.
The industry's future trajectory promises to reshape India's digital ecosystem significantly. Dr. Samantak Das, chief economist and head of research & REIS, India, JLL, noted that by 2026, the DC sector will require 7.3 million square feet of real estate and an infusion of USD 3.8 billion in capital investment. "This expansion is not only driving demand for specialized skills but also creating opportunities across backward-linked industries," Das concluded.
This boom is not only transforming India's technological landscape but also creating ripple effects across the economy. From generating specialized jobs to stimulating growth in backward-linked industries, the data centre expansion is a crux of India's digital revolution.
