Mumbai one of Asia-Pacific's most competitive data centre leasing markets: Report

The Knight Frank report also highlighted Chennai as another emerging data centre destination in India. The city is drawing attention due to its strategic coastal location, which offers robust connectivity and disaster resilience, making it attractive for hyperscalers and enterprise-grade operators looking for diversified infrastructure.

Navi Mumbai's 90 MW data centre has been developed specifically to support hyperscalers like AWS.

According to Shishir Baijal, Chairman and Managing Director, Knight Frank India, the data centre industry in the country is experiencing unprecedented momentum, driven by rapid digitalisation, policy support, and a growing appetite for cloud-based services.

"Cities like Mumbai and Chennai are emerging as key anchors in the global data centre map, offering scalable infrastructure, power availability, and robust connectivity. As demand from hyperscalers and large enterprises intensifies, India is well-positioned to become a regional hub for digital infrastructure investment," he mentioned.

Asia-Pacific (APAC) is projected to grow by 4,174 MW (32 per cent), with 45.9 billion pounds in investments.

Alongside established hubs like Tokyo and emerging locations such as Johor, Malaysia, Mumbai, and Chennai are witnessing increased interest, offering cost advantages, regulatory support, and growing colocation ecosystems.

Globally, the data centre industry is expected to grow by 46 per cent by 2027, adding 20,828 megawatts (MW) in capacity. This expansion could scale up to 177 per cent by 2030, backed by a projected 229 billion pounds in capital expenditure.

This surge is driven by soaring demand for digital infrastructure to support AI, cloud computing, and enterprise digital transformation.

North America remains the dominant global market, with 11,638 MW in new capacity, reflecting a 54 per cent growth rate and a staggering £128 billion in capital being deployed to support this expected growth.

Europe, Middle East and Africa (EMEA) is set to expand by 4,529 MW (44 per cent), requiring a 49.8 billion pounds investment. European markets are experiencing a shift towards secondary hubs such as Milan and Madrid, primarily driven by power constraints in core markets like Frankfurt and London, said the report.