India’s data center sector will remain a center of attraction for investors and in the current calendar year it can attract investment of more than 54 billion dollars i.e. more than Rs 5 lakh crore. Real estate consultant CBRE has made this estimate. Releasing its report ‘India Alternative Sectors Outlook 2026’, CBRE said that the total data center stock in major cities of India is expected to increase by 30 percent on an annual basis in 2026. During this period, new supply of about 500 MW is expected to be added. The country’s total data center capacity was to reach 1,700 MW by the year 2025, mainly due to the addition of a record new supply of 440 MW.
How much investment came in 2025
The report said that this asset class alone saw investment commitments of $56.4 billion in 2025, taking the total cumulative investment to $126 billion. CBRE said these commitments are expected to grow by about 45 percent this year, potentially surpassing $180 billion. Anshuman Magazine, Chairman and Chief Executive Officer (CEO), CBRE (India, South-East Asia, West Asia and Africa), said that the data center story in India is no longer just about capacity but about its implementation at scale.
Major role of foreign investment
He further said that the strength of this sector and the possibility of attractive returns are making it better for investors, in which foreign capital plays a key role. This interest is supported by a strong regulatory framework, which helps increase transparency and simplify access to credit. On the other hand, the Government of India is also focusing on SEMICON 2.0. The government has fixed a budget of Rs 1.25 lakh crore for this project. Although this news has not been confirmed yet, but sources in the media report have been quoted as saying that this budget has been approved by the Finance Ministry.