Archive · 10 Nov 2025
India Emerges as Top Data Centre Market, Mumbai Offers Lowest Construction Costs
Imagine building a big computer building to store lots of digital information, called a data center.
India is becoming a really good place to build these because it's cheaper there!
The city of Mumbai is almost the cheapest place in the whole world to build one of these buildings.
It's also cheaper to power them with electricity compared to other big cities.
Even though India makes a lot of the world's computer information, it doesn't have many of these buildings yet, meaning there's lots of space to build more.
Some people think India could need over 150 billion dollars to build enough of these centers.
But, it's not all easy, as they still need to make sure they have enough power and good ways to get all the parts they need.
Companies need to be smart about how they buy things and find new ways to build them so they don't use too much energy, especially with new AI technology needing even more power.
India is positioned as a top global market for data centre investment.
Mumbai ranks as the second-lowest-cost city worldwide for data centre construction in 2025 at $6.64 per watt.
India's electricity tariffs are competitive, over 50% lower than Shanghai's.
Despite producing 20% of the world's data, India holds only 3% of global data centre capacity, indicating significant growth potential.
Challenges for India's data centre market include securing reliable power and strengthening supply chains.
- Who
- India, specifically Mumbai, and global data centre investors.
- What
- India is identified as a leading data centre market due to low construction costs, with Mumbai ranking second lowest globally for construction expenses. However, challenges like reliable power and supply chains persist.
- When
- Data is presented for 2025, with the report published on November 10, 2025.
- Where
- Mumbai, India, and other global data centre markets including Tokyo, Singapore, and Zurich.
- Why
- India's strategic advantage for data centre investment stems from its competitive construction costs and a massive projected market opportunity driven by the growing demand for data and AI infrastructure, despite existing hurdles.
- Mumbai Construction Cost per Watt (2025)
- $6.64
- Mumbai's Global Construction Cost Rank
- 51st out of 52 (2nd lowest)
- Mumbai Electricity Tariff
- 6.71 US cents/kWh
- India's Data Production vs. Capacity
- 20% of world's data, 3% of global capacity
- Estimated Investment for India's Buildout
- $156 billion
- Average Global Cost Inflation (2025)
- 5.5%