India Emerges as APAC’s Largest Data Centre Market Outside China
A surge in cloud computing and hyperscale AI campuses is transforming the regional landscape, driving unprecedented investment and capacity expansion.
India has emerged as the largest data centre market in the Asia-Pacific region outside China, reflecting the country’s rapidly growing digital infrastructure and increasing demand for cloud and AI computing.
The Hyperscale Investment Wave
According to BloombergNEF, India’s live IT capacity has quadrupled over the past six years, reaching 1.7 GW. The growth story is far from over, with around 1.3 GW of capacity currently under construction and another 3.2 GW of projects having secured the land, power and approvals needed to begin development.
Maharashtra remains at the heart of India’s data centre expansion, accounting for 55% of the country’s live IT capacity. However, the next wave of growth is expected to spread across states including Andhra Pradesh, Gujarat, Karnataka, Tamil Nadu, Telangana and Uttar Pradesh.
The scale of investment is rising sharply. Domestic groups such as Adani and Reliance have announced major commitments to data centre development, while global hyperscalers including Google, Amazon and Microsoft are also investing heavily. Much of the planned investment is focused on large hyperscale AI campuses, underlining how artificial intelligence is reshaping demand for computing infrastructure.
Navigating Infrastructure Constraints
However, rapid expansion will bring new challenges. Data centre electricity demand is projected to rise significantly, while transmission capacity, renewable energy availability and local water resources could become important constraints in certain locations.
India’s data centre opportunity is therefore about more than simply adding capacity. The country’s ability to build reliable power networks, sustainable cooling systems and strong digital connectivity will play a crucial role in determining how successfully it can support the next generation of AI and cloud infrastructure.
