ENA Sectors 2026-04-01 14:38:44 <p><span style="font-size:14px"><strong>New Delhi, Apr 1 (KNN)</strong> Real estate service provider CBRE South Asia has projected a strong expansion in Indias data centre (DC) sector, with total capacity across major cities expected to grow by around 30 percent year-on-year in 2026, supported by an estimated 500 MW of new supply addition.<br /> <br /> According to the firms India Alternate Sectors Outlook 2026 report, the countrys total data centre capacity had already surpassed 1,700 MW in 2025, driven by a record 440 MW of new supply, marking a 160 percent increase over 2024.<br /> <br /> <strong>Investment Momentum Accelerates</strong><br /> <br /> The sector is witnessing significant capital inflows, with cumulative investment commitments reaching USD 126 billion by end-2025. This is projected to rise sharply by around 45 percent year-on-year to exceed USD 180 billion in 2026, reflecting strong investor confidence.<br /> <br /> Data centres have now emerged as a mainstream asset class, ranking as the fourth most preferred investment sector in the Asia-Pacific region, with over half of investors expecting price appreciation in 2026.<br /> <br /> Anshuman Magazine, Chairman and CEO (India, South-East Asia, Middle East &amp; Africa), CBRE, said the sector has moved beyond early-stage potential to large-scale execution, with foreign capital playing a key role in driving growth.<br /> <br /> <strong>Geographic Expansion Beyond Metros</strong><br /> <br /> While leading states such as Telangana, Maharashtra, Andhra Pradesh, Tamil Nadu, and Uttar Pradesh continue to attract the bulk of investments, the report highlights growing interest in tier-II cities.<br /> <br /> Cities such as Ahmedabad, Visakhapatnam, Patna, and Bhopal are emerging as new hubs, driven by 5G rollout, demand for low-latency infrastructure, and data localisation requirements.<br /> <br /> At present, Mumbai dominates the landscape, accounting for over 50 percent of operational data centre inventory, while key hubs including Delhi NCR, Chennai, and Bengaluru together contribute nearly 90 percent of tier-I capacity.<br /> <br /> <strong>Sustainability and Power Demand Challenges</strong><br /> <br /> The report noted that the rapid expansion of AI and cloud infrastructure is placing increasing pressure on power grids, making renewable energy integration a critical component of data centre strategy.<br /> <br /> India added a record 44.5 GW of renewable energy capacity in 2025, strengthening the sectors transition towards sustainable operations.<br /> <br /> <strong>Policy Push Driving Growth</strong><br /> <br /> Government initiatives are further accelerating the sectors growth. Recent policy measures include long-term tax holidays till 2047 for foreign cloud providers using India-based infrastructure, 15 percent safe harbour margin for domestic data centres to ease transfer pricing issues and capital support of 25 35 percent for green technology investments.<br /> <br /> These measures are expected to enhance transparency, improve credit access, and attract institutional capital into the sector.<br /> <br /> With strong policy backing, rising digital consumption, and increasing global investor interest, India is poised to become one of the fastest-growing data centre markets in the Asia-Pacific region, the report noted.<br /> <br /> <em><strong>(KNN Bureau)</strong></em></span></p> 45649 https://knnindia.co.in/news/newsdetails/sectors/indias-data-centre-capacity-to-grow-30-in-2026-investments-may-cross-180-billion-cbre 2026-04-01 14:38:44 knnindia.co.in