New Delhi [India], May 29 (ANI): Mumbai continues to hold the dominant position in the data center race in India, currently accounting for approximately 50 per cent of the total data center capacity in the country. The State benefits from submarine cable landing stations, a reliable power supply, robust roads, and established fiber infrastructure.

The report noted that strong demand from the BFSI sector, its status as a major telecom hub, and the absence of major natural threats solidify its position. Looking ahead, '47% of the total additional capacity over the next five years in India is likely to be situated in Mumbai,' according to a report by Avendus Capital.

The concentration of digital infrastructure remains highly consolidated, with nearly 98 per cent of the country's current installed capacity of 1,650 megawatts clustered within the top seven regional markets.

Both Mumbai and Chennai are leading the data center expansion in India, capitalizing on the inherent advantage of a dense wet cable ecosystem that offers the best global latencies.

Chennai maintains its position as the second most preferred location for data centers in India due to strategic geographic benefits. The city is expected to absorb roughly 15 per cent of the upcoming incremental capacity. Its connectivity will expand further as three more international subsea cables are projected to establish landing stations in Chennai over 2026-27, enhancing its appeal for infrastructure development.

As per the report, Hyderabad is transforming into a major destination for both colocation facilities and hyperscaler self-build projects. The city is slated to receive approximately 11 per cent of the upcoming incremental capacity, supported by ongoing developments from CtrlS, Sify, and CapitaLand. Tech companies are expanding their footprints in the region, with Microsoft Azure making large commitments and Amazon Web Services expanding heavily.

The overall market data indicates varied operational dynamics across the seven key cities. The report showcased Mumbai leading with a total capacity of 801 megawatts and a low vacancy rate of 2.9 per cent, supported by 448 megawatts under construction and 893 megawatts in planned supply.

Chennai follows with 268 megawatts of total capacity, a 12.4 per cent vacancy rate, 153 megawatts under construction, and 273 megawatts of planned supply.

As per the report, other regional hubs are also expanding their capacities. Delhi-NCR holds 161 megawatts of total capacity with a 10.2 per cent vacancy rate, while Hyderabad has 138 megawatts of capacity and a 9.7 per cent vacancy rate.

Bengaluru operates at 119 megawatts capacity with a 6.9 per cent vacancy rate. Pune records a tight 2.0 per cent vacancy rate on its 111 megawatts capacity, and Kolkata operates 17 megawatts of capacity with a 3.5 per cent vacancy rate. (ANI)