India Data Center Market: India has emerged as one of the world’s most attractive markets for data center investment. According to Turner & Townsend’s latest data center construction cost index, Mumbai was the second lowest cost region in the world for data center construction in 2025.
The data center construction cost in Mumbai is only US$6.64 per watt, ranking the city 51st out of 52 global markets, the report said. The ranking is based on the per watt cost of building a data center, with first rank representing the highest construction cost and 52nd representing the lowest construction cost.
Mumbai won
Thus, Mumbai’s 51st position shows that it is the second most economical city in the world for data center construction. India gets a strategic edge for investment due to low costs, which are much lower than other major centers like Tokyo, Singapore and Zurich. Mumbai also benefits from cheaper electricity rates of 6.71 US cents per kilowatt hour, which is more than 50 percent less than Shanghai. India generates 20 percent of the world’s data, but has only three percent of the global data center capacity.
This reveals heavy dependence on foreign hosting and also indicates the possibility of massive expansion of the domestic market. “India is at an important global inflection point, with markets like Mumbai offering competitive construction costs,” said Sumit Mukherjee, managing director of real estate in Asia at Turner & Townsend.
An estimated investment of US$ 156 billion is needed for regional construction here. This low-cost base gives India a major advantage for data center investment.” Apart from being the financial capital of the country, Mumbai has also been successful in attracting the attention of foreign investors.
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