Mumbai Takes the Lead as India’s Data Centre Powerhouse
Mumbai is stealing the spotlight as India’s top data centre hub. The city now handles a whopping 40% of the country’s total data centre capacity and 44% of its live IT capacity, according to a fresh report from real estate experts Knight Frank.
In the first half of 2025, Mumbai’s data centre capacity shot up by 14.3%, crossing the impressive 4 GW mark. This includes 591 MW that’s already up and running, 185 MW under construction, and a massive 3.2 GW in the pipeline. The report highlights how India’s overall data centre market crossed 10 GW in the second half of 2024, backed by 1.4 GW live capacity and 400 MW being built.
Demand is booming in Mumbai, with 97.6 MW of space snapped up in just six months. The city’s vacancy rate sits at a low 5.4%, way below the national average of 12.3%. What’s more, two-thirds of the under-construction space is already pre-leased to big companies, showing strong investor confidence.
Mumbai’s market mixes big and small setups. While three live sites can handle hyperscale projects over 2.5 MW, only one offers more than 10 MW. This has pushed global giants and local partners to eye larger campuses. For instance, NTT is rolling out a 500 MW NAV2 project, and Blackstone teamed up with Panchshil Realty for a 500 MW AI-focused facility.
Hyderabad isn’t far behind as India’s second-biggest data centre market, with 2.1 GW capacity. It’s gearing up for hyperscale expansion, adding over 500 MW through two major projects.
"Mumbai is drawing steady global investment with over 3 GW in the pipeline and solid government backing for green data centre parks," says Shishir Baijal, Chairman and Managing Director of Knight Frank India. He points to the city’s strong subsea cable links, reliable power supply, closeness to business centers, and forward-thinking policies as key reasons it’s becoming South Asia’s go-to spot for cloud computing, AI, and enterprise needs.
Baijal adds, "Mumbai has truly become the heart of India’s digital boom. Cities like Chennai, Hyderabad, and Bengaluru are catching up, but none can match Mumbai’s size, pace, and role as a gateway for cloud, AI, and enterprise workloads in the region."
This surge in data centre growth underscores India’s rising status in the global tech scene, fueled by AI demands and digital transformation.
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