A recent report by Avendus Capital has highlighted the most preferred cities for data centre hubs in India, with Mumbai leading the way. According to the report, Mumbai currently accounts for approximately 50% of the total data centre capacity in the country. This dominance is attributed to its robust infrastructure, availability of submarine cable landings, and proximity to major business hubs.
Mumbai's Dominance in Data Centre Capacity
Mumbai's strategic location and well-developed ecosystem make it the top choice for data centre operators. The city's existing capacity is unmatched, and it continues to attract significant investments from both domestic and international players. The Avendus Capital report underscores Mumbai's critical role in India's digital infrastructure.
Bengaluru Emerging as a Key Contender
While Mumbai remains the frontrunner, Bengaluru is rapidly emerging as a preferred destination for data centre hubs. The city's strong IT sector, skilled workforce, and growing demand for cloud services are driving this growth. Bengaluru's favourable climate and reliable power supply further enhance its appeal for data centre operations.
Other Cities in the Race
Besides Mumbai and Bengaluru, other cities like Chennai, Hyderabad, and Pune are also gaining traction as potential data centre hubs. These cities offer competitive advantages such as lower operational costs, land availability, and government incentives. The report suggests that the data centre landscape in India is set to expand significantly in the coming years.
The Avendus Capital report provides a comprehensive analysis of the data centre market in India, highlighting key trends and growth drivers. As digital transformation accelerates across industries, the demand for data centres is expected to surge, making these cities crucial for India's technological advancement.



