Data Centres Overtake Offices in India Real Estate PE
Data centres receive USD 2.5 billion in private equity investment in India in 2026.
Key Highlights
Data centres surpass office spaces as the top destination for private equity investments in India’s real estate sector, driven by AI and digital growth.
A recent report by Colliers reveals that data centres have emerged as the leading asset class for private equity inflows in India during 2026. This marks a clear departure from the traditional dominance of office spaces in attracting institutional capital.
Driving Factors and Market Shift
The surge in data centre investments stems from India’s rapid digital transformation, widespread cloud computing adoption, and increasing demand for artificial intelligence infrastructure. Investors view data centres as critical digital infrastructure offering stable, long-term returns compared to conventional commercial real estate.
Key takeaways from the report include:
• Data centres have surpassed office spaces as the primary destination for private equity investments.
• Digital transformation and AI demand are driving the rapid surge in capital inflows.
• Traditional commercial leasing has been outpaced by the appetite for digital infrastructure.
Strategic Investment Outlook
While office spaces remain a vital component of the real estate market, appetite for digital infrastructure has outpaced traditional leasing. This trend underscores a broader strategic pivot among global and domestic investors capitalizing on India’s growing status as a global data hub.