According to a Colliers India report, this surge is supported by substantial government stimulus, strategic infrastructure investments and growing demand for digital services.

The combined installed data center capacity in Chennai, Bengaluru and Hyderabad is approximately 200 MW.

“With 190 MW currently under construction and an additional 170 MW planned, this foundation is set to be significantly strengthened,” according to the report.

These developments are expected to increase total capacity by 80 percent over the next few years, underscoring the region's strategic importance in supporting the global digital infrastructure.

“With continued government support and continued infrastructure development, South India is set to become a global data center hub,” said Swapnil Anil, executive director and head of advisory services, Colliers India.

Chennai's current installed capacity is 87 MW, with 156 MW under construction and 104 MW planned.

Bengaluru benefits from its strong IT ecosystem. The city currently has an installed capacity of 79 MW, of which 10 MW is under construction and 26 MW is in the planning stage.

Hyderabad is fast emerging as a data center hotspot. The city's installed capacity is 47 MW, of which 20 MW is under construction and 38 MW is planned.

Monthly recurring charges for data centers in South India are competitive, ranging from Rs 6,650 to Rs 8,500 per kWh per month depending on usage, providing significant value for money, the report said.