New Delhi, Nov 12 : India's data centre (DC) capacity crossed 1.5 gigawatt (GW) for the first time during the first nine months this year (9M 2025), a report said on Wednesday.

A supply of 260 MW has been added between January and September this year.

"The growth is mainly driven by rapid digitalisation, favourable government regulations, and increasing corporate investments in Artificial Intelligence (AI)," CBRE South Asia, a real estate consulting firm, stated in its report.

According to the report, Mumbai leads the countryâ??s total DC capacity with a 53 per cent share of the total, around 1,530 MW at the end of September this year.

This is mainly due to its proximity to global internet exchange points and a key entry location for worldwide submarine cables.

The report added that Chennai, Delhi-NCR, and Bengaluru follow Mumbai, with shares of 20 per cent, 10 per cent, and 7 per cent, respectively. The four cities cumulatively account for nearly 90 per cent of the countryâ??s total DC capacity.

Indiaâ??s Data Centre capacity has seen significant growth in the last four to five years, mirroring the country's rapid digital transformation, said Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE.

â??Rapid digitalisation due to rising Internet penetration, cloud adoption, and the emergence of AI and Internet of Things (IoT), has taken the need for strong data infrastructure to new heights," he added.

This is being supported by government policies and data localisation norms, positioning India as a key hub for global as well as domestic investors, the Magazine said further.

As per the report, India offers one of the most cost-competitive DC environments globally, supported by relatively lower construction and electricity costs as compared to markets such as Singapore, China, and Japan.

The nation also has a large pool of digital and AI talent, accounting for nearly 16 per cent of the global AI workforce with over 600,000 professionals. This is expected to double by 2027.

The CBRE report highlighted that India has attracted nearly $94 billion in DC investment commitments since 2019, with Telangana, Maharashtra, and Tamil Nadu emerging as the top three destinations.

The countryâ??s DC sector witnessed investment commitments worth around $30 billion during the January-September 2025 period.

/IANS