Why Delhi’s data centre vacancy rate is expected to decline in H2 2025

Vacancy rate surged to 44% in H1.

According to a report from Cushman and Wakefield, operational capacity in the Delhi NCR data centre market rose from 129MW in H2 2024 to 146MW in H1 2025, marking a 13% increase. Vacancy rate, however, surged to 44% due to slower demand uptake and the commissioning of new supply.

“With only around 20MW expected to become operational in the remainder of 2025 and a gradual absorption of existing capacity, the vacancy rate is projected to decline in H2 2025,” the report said.

Here’s more from Cushman and Wakefield:

Overall absorption remains modest, largely driven by retail and enterprise clients, with limited hyperscale activity. This demand profile has contributed to stable colocation rents, which have remained largely unchanged over the past six months.

Noida and Greater Noida continue to be the preferred destinations for data centre development, accounting for 92% of the 233MW currently in the development pipeline. These locations offer strategic advantages in terms of infrastructure and scalability. Beyond the active pipeline, an additional 360+MW is in early stages of development, with land already secured by operators for future expansion.

The operators are expected to adopt a phased and demand-aligned approach to bringing new capacity online, ensuring that supply additions are paced in line with demand trends.

Notably, there are no new entrants expected in the Delhi NCR market in the near term. The entire development pipeline and land reserves are held by the same nine operators who currently have operational facilities. All in all, although the Delhi NCR market has shown signs of tightening, the upcoming supply and a cautious demand environment will require operators to remain agile and responsive to evolving market dynamics.