Get access to Exclusive Content for Free. Join Us Now!

Explore Aurum kuberx Click here to explore

What is the role of data centers in India's commercial real estate market?

Data centers are emerging as a vital segment within India’s commercial real estate landscape, buoyed by digital transformation, cloud adoption, and growing internet usage:

  • New Demand Driver: Traditional commercial spaces primarily catered to offices, but the rise of AI, IoT, and 5G has multiplied data storage and processing needs. Hyperscale and co-location facilities demand dedicated land, robust power setups, and large floor areas.
  • Market Size & Growth: By 2023, India’s live data center capacity reached ~854 MW across around 13 million sq. ft. Major hubs like Mumbai, Chennai, and Bengaluru account for over 80% of this inventory, attracting both domestic and global operators.
  • Infrastructure Requirements: Data centers need redundant power, cooling systems, and fiber connectivity, often pushing developers to build advanced industrial-grade parks. This shift expands the scope of commercial real estate from merely offices to tech-driven facilities.
  • Regulatory Tailwinds: Policies like data localization and proposed Data Protection Acts underscore the need for secure, on-shore servers, further propelling data center expansions.

Hence, data centers offer higher rental yields and longer lease terms, making them an attractive addition to India’s commercial real estate portfolio.

0 People have found this helpful

Unlock the Latest in Real Estate

Reach Out to Us

Data that drives action. Insight that inspires action. Technology that empowers action.“

Aurum Proptech

© PropTech Pulse 2025, All rights reserved.

Terms of Use and Privacy Policy