Mumbai named “powerhouse” data center market in new report

The city expanded its data center stock by 52MW in early 2025, marking strong growth in power capacity and infrastructure readiness.

Representative Image/ Mumbai city / Image - Unsplash

Mumbai has been recognized as a “powerhouse” data center (DC) market in a new report, placing the city alongside global hubs such as Tokyo, Beijing, Johor, Sydney, and Shanghai.

According to the Cushman & Wakefield’s latest Asia Pacific Data Center H1 2025 Update, Mumbai’s continued dominance as India’s largest and most dynamic data center hub is fueled by strong operational growth and robust development activity.

In the first half of 2025 alone, the city added 52 megawatts (MW) to its live data center stock. With 180MW of the 337MW under construction expected to go live in the next six months, Mumbai’s total operational capacity could approach 800MW by year-end.

The Thane-Belapur Road cluster remains the heart of activity, accounting for 70 percent of Mumbai’s operational capacity and over 82 percent of its pipeline. However, with land scarcity emerging as a key constraint, operators are eyeing alternatives such as Palava for future expansion, according to the report.

Despite a 10 percent increase in operational capacity, vacancy rates only edged up slightly to 6.6 percent, underscoring robust demand, as highlighted by the report. Hyperscale cloud providers and banks remain the largest contributors to take-up, while AI-driven workloads are beginning to shape demand for high-density infrastructure.

The report also spotlights major upcoming projects. PDG is set to launch its second facility at Airoli with over 150MW capacity across five sites. NTT and the Blackstone-Panchshil joint venture have announced plans for separate 500MW campuses in Navi Mumbai. Connectivity is set to improve further with the India Europe Xpress (IEX), SeaMeWe-6, and Raman subsea cables expected by 2026.

Meanwhile, Hyderabad, Chennai, Delhi, and Pune have been categorized as “developing” markets, with Delhi NCR showing strong supply additions but facing high vacancy rates.

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