Stories
Network Connectivity Outranks Power in India Data Centre Site Selection
- •Network connectivity has emerged as the primary factor for data centre site selection in India, cited by 75 percent of surveyed operators according to a CBRE report.
- •Power availability ranked second at 67 percent, followed by proximity to clients at 58 percent and land cost at 50 percent.
- •The shift is driven by AI and cloud workloads requiring higher-density infrastructure, with AI facilities needing up to 50 kW per rack compared to 8-10 kW for traditional setups.
- •Mumbai and Chennai remain India's most mature data centre markets, hosting over 90 percent of surveyed operators due to multiple cable landing stations.
- •India's operational data centre capacity reached nearly 1,750 MW in H1 2026 and is expected to hit 2 GW by the end of the year, backed by over 170 billion dollars in cumulative investments.
Key Questions Answered
Network connectivity has emerged as the top factor influencing data centre site selection in India, with 75 percent of surveyed operators identifying it as a key consideration. It ranks ahead of power availability, which was cited by 67 percent of respondents.
India's operational data centre capacity stood at nearly 1,750 MW at the end of H1 2026 and is expected to reach 2 GW by the end of the year. Over 80 percent of existing capacity remains concentrated in major markets such as Mumbai, Chennai, and Delhi-NCR.
AI-focused facilities can require 30 to 50 kW per rack, whereas traditional facilities typically require only 8 to 10 kW. This surge in demand is driven by AI and cloud workloads, making robust connectivity, power, and specialised infrastructure vital for commercial viability.
