Mumbai's Data Centre Surge: A Digital Powerhouse Emerges

June 9, 2025, 5:28 am
Iron Mountain
Iron Mountain
ComputerDataFinTechFirmIndustryManagement
Location: United States, Massachusetts, Boston
Mumbai is on the rise. The city is transforming into a global data centre hub, ranking sixth in the world for under-construction capacity. This leap surpasses established giants like London and Dublin. The latest report from Cushman & Wakefield paints a vivid picture of this growth. The global data centre market is booming, driven by the relentless demand for cloud computing and artificial intelligence.

The Asia Pacific region is at the forefront of this expansion. Ten of the world's thirty largest data centre markets are now located here. In 2024 alone, the region added 1.6 gigawatts (GW) of new capacity, bringing its total to 12.2 GW. The development pipeline is robust, with an additional 14.4 GW either under construction or planned. This growth is fueled by several key drivers: the rollout of 5G, increased cloud adoption, and the rising consumption of digital content.

Mumbai is not just a player; it’s a key contributor. The city has 335 megawatts (MW) of data centre capacity under construction. Once completed, this will boost its operational capacity by 62%. This surge is significant, as Mumbai accounts for 42% of India’s projected under-construction capacity. The city is solidifying its status as a regional data centre hub.

Infrastructure is the backbone of this growth. Digital upgrades are underway, with three crucial undersea data cable projects expected to land in Mumbai by the end of 2025. These cables will enhance India’s internet capacity and speed, connecting the country more effectively with Africa, Europe, the Middle East, and Asia. This connectivity will elevate Mumbai’s position as a major hub in Southeast Asia.

The report highlights a strategic shift in India’s data centre landscape. Mumbai is now among the top global markets, while Pune is emerging as another key player. Pune is ranked fourth among APAC's top emerging data centre markets. It is quickly becoming a preferred destination for hyperscalers and enterprise-grade colocation facilities. As of the first quarter of 2025, Pune has 112 MW of operational data centre stock, with an additional 190 MW in the pipeline.

Major players are flocking to Pune. Companies like STT GDC, Nxtra by Airtel, and Iron Mountain are establishing their presence. They are drawn by Pune’s favorable climate, skilled workforce, and reliable power infrastructure. The city’s strategic connectivity to Mumbai’s cable landing stations makes it an attractive option for data centre operators.

Investor interest in the region is palpable. Rising occupancy levels and stable rental yields signal a healthy market. The long-term growth prospects from hyperscale and colocation expansions are enticing. This dual momentum—global confidence and local commitment—underscores India’s readiness to scale sustainably.

The data centre industry is not just about numbers; it’s about the future. As digital transformation accelerates, the demand for data storage and processing will only grow. Companies are increasingly relying on cloud services to manage their operations. This shift is reshaping the landscape of data centres.

In this context, Mumbai’s growth is a beacon. The city is positioning itself as a digital infrastructure powerhouse. The combination of strategic investments, infrastructure upgrades, and a growing talent pool is creating a fertile ground for data centre expansion.

The implications are vast. Enhanced digital connectivity will support businesses across various sectors. It will enable faster data processing, improved customer experiences, and innovative solutions. The ripple effects of this growth will be felt beyond the tech industry.

As Mumbai continues to expand its data centre capacity, it is also contributing to India’s economic growth. The data centre sector is becoming a significant driver of job creation. Skilled professionals are in high demand, and this trend is likely to continue.

In conclusion, Mumbai is not just catching up; it is leading the charge in the data centre revolution. The city’s rapid growth in capacity and infrastructure is a testament to its potential. As the digital landscape evolves, Mumbai is poised to play a pivotal role. The future is bright for this emerging data centre hub. The city is ready to embrace the digital age, and the world is watching.