Mumbai APAC's most competitive data centre leasing markets: Kinght Frank

Mumbai has emerged as one of the Asia-Pacific (APAC) region's most competitive data centre leasing markets, driven by AWS-led colocation growth. The city’s data centre ecosystem is being transformed by Amazon Web Services (AWS), which is significantly scaling through large-scale colocation leases rather than self-builds, accelerating Mumbai’s emergence as a regional data centre powerhouse, a latest Knight Frank report titled 'Global Data Centres Report' says.

Navi Mumbai’s 90 MW data centre, developed to support hyperscalers like AWS, 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 adds.

Chennai has also emerged 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, the report adds.

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.

India’s data centre industry is experiencing unprecedented momentum, driven by digitalisation, policy support, and a growing appetite for cloud-based services, says Shishir Baijal, Chairman & Managing Director, Knight Frank India. "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.”

Globally, 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.

According to the report, Asia-Pacific (APAC) is projected to grow by 4,174 MW (32%), with £45.9 billion in investments. 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.