Mumbai Emerges As One Of APAC’s Most Competitive Data Centre Leasing Markets: Knight Frank

* Global Data Centre Market Projected 46% Increase In Capacity By 2027

Knight Frank in its latest report Global Data Centres Report, identified Mumbai as one of the most competitive leasing markets in the Asia-Pacific (APAC) region. The city’s data centre ecosystem is being transformed by AWS, which is significantly scaling through large-scale colocation leases rather than self-builds. This strategic approach is accelerating Mumbai’s emergence as a regional data centre powerhouse.

Navi Mumbai’s 90 MW data centre has been developed specifically to support hyperscalers like AWS. This facility is designed with rapid scalability and high-density capacity, aligning perfectly with AWS’s growth needs. These large-scale colocation deals are driving the expansion of Mumbai’s availability zones (AZs). Currently, Mumbai has three AZs, but their footprint is growing with deployments spreading from Airoli and Juinagar to Panvel.

The report also highlights 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.

Globally, the data centre industry is expected to grow by 46% by 2027, adding 20,828 megawatts (MW) in capacity. This expansion could scale up to 177% by 2030, backed by a projected £229 billion in capital expenditure. This surge is driven by soaring demand for digital infrastructure to support AI, cloud computing, and enterprise digital transformation.

Shishir Baijal, Chairman & Managing Director, Knight Frank India, said "India’s data centre industry 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.”

Regional Growth Highlights:

• North America remains the dominant global market, with 11,638 MW in new capacity, reflecting a 54% growth rate and a staggering £128 billion in capital being deployed to support this expected growth. The region benefits from a combination of homegrown hyperscale dominance, increasing enterprise colocation demand, and strategic expansion into emerging secondary markets.

• Europe, Middle East & Africa (EMEA) is set to expand by 4,529 MW (44%), requiring a £49.8 billion 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.

• Asia-Pacific (APAC) is projected to grow by 4,174 MW (32%), with £45.9 billion 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.

Stephen Beard, Global Head of Data Centres at Knight Frank said, “The global data centre industry is undergoing rapid transformation, with hyperscaler and colocation providers prioritising markets that offer access to power, robust connectivity, and a favourable regulatory environment. We’re increasingly seeing sustainability considerations shaping investment strategies, with an increasing focus on renewable energy adoption and energy-efficient design. Real estate investors and developers are positioning themselves to capitalise on this demand, with an emphasis on acquiring strategically located land and securing long-term power agreements. As global capital races to capture the next wave of digital infrastructure growth, the competition for prime development sites, particularly in power-constrained locations, will intensify. Industry stakeholders must navigate regulatory complexities, power availability concerns, and sustainability requirements to remain competitive in this high-growth sector. Operators, investors, policymakers, and partners, each have a role to play in shaping this future. The task ahead is to build infrastructure that not only supports innovation but also safeguards sustainability, security, and equity.”