Archive · 2 Sep 2026
India Data Centre Capacity Seen Reaching 6 GW by 2029
India is building many more facilities that store and process digital information.
JLL expects the country’s data centre capacity to rise from 1.6 GW in June 2026 to 6 GW by 2029.
These facilities are needed partly because artificial intelligence and cloud services require a lot of computing power.
During the first half of 2026, companies used 101 MW of new data centre space.
Developers added 85 MW of supply, mainly in Mumbai and Chennai.
Only 2.8% of the space was empty, showing that demand is very strong.
The expansion could require about $110 billion in investment.
A tax holiday for foreign cloud companies has helped attract more than $50 billion in commitments.
New data centre hubs are also expected to grow in Hyderabad and Visakhapatnam.
India’s data centre capacity is projected to grow from 1.6 GW in June 2026 to 6 GW by 2029.
The industry absorbed 101 MW and added 85 MW of supply during the first half of 2026.
Vacancy fell to a record-low 2.8%, with Mumbai and Chennai receiving most new capacity.
The expansion is expected to require about $110 billion, including $88 billion for IT equipment.
AI workloads, hyperscale cloud deployments and a 20-year tax holiday are driving investment commitments.
- Who
- India’s data centre industry, global hyperscalers, foreign cloud service providers and investors.
- What
- India’s data centre capacity is projected to increase from 1.6 GW to 6 GW by 2029.
- When
- The projection covers the period from June 2026 to 2029; the reported market figures cover the first half of 2026.
- Where
- India, with current supply concentrated in Mumbai and Chennai and projected growth in Hyderabad and Visakhapatnam.
- Why
- Growth is being driven by AI workloads, hyperscale cloud deployments, tax incentives and investment in digital infrastructure.
- Projected capacity by 2029
- 6 GW
- Capacity as of June 2026
- 1.6 GW
- First-half 2026 absorption
- 101 MW
- First-half 2026 supply delivered
- 85 MW
- Vacancy rate
- 2.8%, a record low
- Estimated capital requirement
- About $110 billion
- Foreign capital commitments
- More than $50 billion
- Tax incentive
- A 20-year tax holiday for foreign cloud service providers, extended until March 31, 2047