India's data center colocation market to grow 25.5% in 2026, reaching $7.31B driven by AI and cloud demand.

India's data center colocation market is projected to expand by 25.5% in 2026, reaching $7.31 billion, fueled by rising AI workloads, hyperscaler expansions, and hybrid multi-cloud adoption. Key hubs include Mumbai, Chennai, Hyderabad, and Pune, supported by improved power infrastructure and renewable energy access. The new Digital Personal Data Protection Act is also driving compliance-related investments. The market is expected to continue growing at a 20.1% CAGR through 2030, reaching $15.22 billion as India becomes a leading Asia-Pacific colocation market.