How do data centre power, build and colocation costs in India compare with other countries?
Last updated
Grid power for large users in India costs about ₹6.2 to ₹10.9 per kWh, a mid-range price (FY2026-27 tariffs). Building is cheap: about US$7.4m per MW, against US$15.2m in the USA (Cushman & Wakefield, 2026). Mumbai colocation costs US$73 to US$105 per kW a month (H1 2025), against US$330 to US$475 in Singapore (Q1 2026).
Key facts
In Maharashtra (MSEDCL), large industrial users on high-tension supply pay an average ₹10.88 per kWh (US$0.114). If billed as commercial, they pay ₹16.74 (US$0.176), about 54% more.
As of FY2026-27. MERC (tariff order, 25 Mar 2026)
Singapore's regulated tariff for large users works out at S$0.235 to S$0.246 per kWh all-in (US$0.184 to US$0.192).
As of Q4 2026. SP Group
Building a data centre in India costs about US$7.4m per MW (about ₹70 crore; range US$5.9m to US$9.0m), excluding land and IT equipment. Malaysia is US$9.6m and the USA US$15.2m.
As of 2026. Cushman & Wakefield cost guides
Mumbai colocation rent is ₹7,000 to ₹10,000 per kW a month (US$73 to US$105) for 250 kW to 1 MW, and ₹6,000 to ₹7,500 (US$63 to US$79) for 5 MW or more.
As of H1 2025. Cushman & Wakefield
Colocation asking rents elsewhere: Northern Virginia US$190 to US$235, Frankfurt US$235 to US$265 and Singapore US$330 to US$475 per kW a month.
As of Q1 2026. CBRE
Rupee to dollar conversions use ₹95.25 per US$ (FBIL reference rate, 13 Oct 2026).
Terms used on this page (10)
- Colocation
- Renting space, power and cooling in someone else's data centre for your own servers.
- Energisation, sanctioned load
- Energisation is when the utility actually switches power on. Sanctioned load is the maximum power it has approved for the connection.
- DISCOM
- A state electricity distribution company. It supplies and bills most large users.
- HT, EHV, HV-2
- High-tension (usually 11 to 33 kV) and extra-high-voltage supply; higher voltage usually means a lower tariff. HV-2 is Uttar Pradesh's category for large and heavy power users.
- Open access, wheeling, cross-subsidy surcharge
- Open access lets a large user buy power from a generator other than its DISCOM. Wheeling is the fee for using the DISCOM's wires; the cross-subsidy surcharge compensates the DISCOM for the customer it loses.
- Captive, group captive
- A power plant at least 26% owned by the users who consume at least 51% of its output. It is exempt from some surcharges.
- FY (Indian financial year)
- April to March. FY2026-27 runs from 1 Apr 2026 to 31 Mar 2027.
- H1, H2
- The first half (January to June) and second half (July to December) of a calendar year.
- Lakh, crore
- 1 lakh is 100,000 and 1 crore is 10 million. ₹1 lakh crore is ₹1 trillion, about US$10.5bn at ₹95.25 per US$.
- MEP
- Mechanical, electrical and plumbing: the building services trades on a data centre build.
Tariffs, build costs and rent, market by market
Grid power in India is mid-priced, not cheap. Building a data centre is cheap. Colocation rent is low by global standards.
Your real bill depends on the state, the supply voltage and the tariff category the state distribution company (DISCOM) gives your site. Energy is about 65% of data centre operating cost (S&P Global, cited by Cushman & Wakefield).
What this means for a GPU cloud
Tariff category is the biggest swing. In Maharashtra a data centre billed as commercial pays about 54% more than one billed as industrial, and several state data centre policies help secure industrial treatment; in Karnataka the current order makes HT commercial slightly cheaper than industrial. Confirm the category per connection, in writing, and compare delivered rupees per kWh.
Grid power for large users: price per kWh
| Market | US$ per kWh | As of |
|---|---|---|
| Andhra Pradesh (Visakhapatnam) | 0.065 to 0.075 | FY2026-27 |
| Uttar Pradesh (Noida) | 0.069 to 0.081 | FY2026-27 |
| Karnataka (Bengaluru) | 0.079 industry; 0.070 commercial | FY2026-27 |
| Telangana (Hyderabad) | 0.082 to 0.092 | FY2026-27 |
| Tamil Nadu (Chennai) | 0.095 to 0.105 | FY2025-26 rates |
| Maharashtra (Navi Mumbai, Pune) | 0.108 to 0.114 | FY2026-27 |
| Maharashtra, if billed as commercial | 0.176 | FY2026-27 |
| USA: Virginia (industrial) | 0.101 | Jul 2026 |
| Germany (Frankfurt proxy) | 0.154 | H1 2026 |
| Singapore | 0.184 to 0.192 | Q4 2026 |
Indian rows are our all-in estimates from each state's tariff order, for a large user drawing a flat load around the clock. Rupee prices, tariff categories, more countries and every source are under How we got these numbers, below. Foreign rows use different bases, so treat them as a guide, not a like-for-like quote.
How we got these numbers: grid power by market and tariff category
Rupee and local prices, tariff categories and sources for 17 markets
| Market | Indicative all-in price per kWh | US$ per kWh | Basis | As of | Source |
|---|---|---|---|---|---|
| Maharashtra (MSEDCL: Navi Mumbai, Thane-Belapur, Pune) | ₹10.28 (EHV) to ₹10.88 (HT) | 0.108 to 0.114 | Industry at high-tension (HT, 11 to 33 kV) or extra-high voltage (EHV): average billing rate for that sub-category, used to set cross-subsidy. HT industry as a whole averages ₹10.71 in FY27 | FY2026-27 | MERC order, 25 Mar 2026 |
| Maharashtra, if billed as commercial | ₹16.74 (HT) | 0.176 | Commercial at high-tension (11 to 33 kV): average billing rate for that sub-category. HT commercial as a whole averages ₹16.78 in FY27 | FY2026-27 | MERC order |
| Tamil Nadu (Chennai) | About ₹9.0 (our estimate); ₹9.96 approved average billing rate | 0.095 to 0.105 | High-tension industry and IT services (category HT-I), which names data centres | FY2025-26 rates; FY2026-27 revision of up to 6% not confirmed | TNERC order, 30 Jun 2025 |
| Telangana (Hyderabad) | ₹7.8 to ₹8.8 (our estimate) | 0.082 to 0.092 | High-tension industry (category HT-I(A)), 11 kV to 132 kV | FY2026-27 | TGERC tariff schedule |
| Uttar Pradesh (Noida, state DISCOMs) | ₹6.6 to ₹7.7 (our estimate) | 0.069 to 0.081 | Large and heavy power users (category HV-2), 11 kV to above 132 kV | FY2026-27 | UPPCL notice of UPERC tariff, Jul 2026 |
| Karnataka (Bengaluru) | About ₹7.5 industry; about ₹6.7 commercial (our estimates) | 0.079; 0.070 | HT industry; HT commercial is now slightly cheaper | FY2026-27 | KERC order, 27 Mar 2025 |
| Andhra Pradesh (Visakhapatnam) | ₹6.2 to ₹7.1 (our estimate) | 0.065 to 0.075 | High-tension industry, 11 kV to 132 kV | FY2026-27 | APERC order, 25 Mar 2026 |
| Singapore | S$0.235 to S$0.246 | 0.184 to 0.192 | SP Group regulated tariff for large users at extra-high and high tension | Q4 2026 | SP Group |
| Ireland (Dublin proxy) | €0.180 | 0.201 | National non-household average, 70-150 GWh a year, excl. VAT | H1 2026 | Eurostat |
| Germany (Frankfurt proxy) | €0.138 | 0.154 | Same basis | H1 2026 | Eurostat |
| Netherlands (Amsterdam proxy) | €0.125 | 0.140 | Same basis | H1 2026 | Eurostat |
| USA: Virginia | 10.07; 11.68 US cents | 0.101; 0.117 | State average, industrial; commercial | Jul 2026 | US EIA |
| USA: Texas | 7.07; 8.47 US cents | 0.071; 0.085 | State average, industrial; commercial | Jul 2026 | US EIA |
| Japan | ¥28.26 | 0.179 | Business average incl. taxes, not a large-user rate | Mar 2026 | GlobalPetrolPrices (low confidence) |
| Malaysia | RM0.473 | 0.116 | Business average incl. taxes, not a large-user rate | Mar 2026 | GlobalPetrolPrices (low confidence) |
| UAE | AED 0.405 | 0.110 | Business average incl. taxes | Mar 2026 | GlobalPetrolPrices (low confidence) |
| Indonesia | Rp1,114.74 | 0.062 | Business average incl. taxes | Mar 2026 | GlobalPetrolPrices (low confidence) |
Our Indian all-in estimates assume a flat 24x7 load at 85% load factor and include demand charges and time-of-day effects. They exclude electricity duty, fuel adjustment and open access charges. Exchange rates: ₹95.25, S$1.28, ¥158.1, RM4.09, Rp17,881 per US$ (FBIL and ECB, 13 Oct 2026); AED 3.6725 per US$ (fixed peg); €1 = US$1.119. Foreign rows use different bases, so treat them as a guide, not a like-for-like quote. HT means high-tension supply (usually 11 to 33 kV), EHV extra-high voltage.
Green power and open access: cost building blocks
Renewable purchase prices, open access surcharges, wheeling and the captive exemption
| Item | Value | US$ | As of | Source |
|---|---|---|---|---|
| Solar bought by MSEDCL | ₹2.67 to ₹3.04 per kWh | 0.028 to 0.032 | FY2026-27 projection | MERC |
| Firm and dispatchable renewables bought by MSEDCL | ₹4.46 per kWh | 0.047 | FY2026-27 projection | MERC |
| Cross-subsidy surcharge on third-party open access | Maharashtra ₹2.11; Tamil Nadu ₹1.99; Andhra Pradesh (Vizag DISCOM) ₹1.37 to ₹1.71 per kWh | 0.014 to 0.022 | FY2025-26 to FY2026-27 | MERC; TNERC; APERC |
| Wheeling charges | ₹0.81 to ₹1.04 per kWh | 0.009 to 0.011 | FY2025-27 | MERC; TNERC |
| Inter-state transmission waiver for solar and wind | 100% if commissioned by 30 Jun 2025, then 75%, 50%, 25%; nil after 30 Jun 2028 | n/a | 2026 | Cushman & Wakefield / Invest India |
| Green energy open access threshold | 100 kW; deemed approval after 15 days (as reported; not checked against each state's rules) | n/a | 2026 | Cushman & Wakefield / Invest India |
| Captive or group captive (26%+ ownership and 51%+ consumption) | Exempt from cross-subsidy and additional surcharges | n/a | Electricity Act | Cushman & Wakefield / Invest India |
Generation rates are utility purchase benchmarks, not prices a data centre can contract at. The landed cost of round-the-clock green power varies by state and structure; we found no sourced all-in figure.
Construction cost (excluding land and IT equipment)
| Market | US$m per MW | Range | Source and date |
|---|---|---|---|
| India (national average) | 7.4 (about ₹70 crore) | 5.9 to 9.0 | Cushman & Wakefield, 2026 |
| Mumbai | 6.64 | n/a | Turner & Townsend, cited Feb 2026 |
| Indonesia | 8.3 | 6.6 to 11.2 | Cushman & Wakefield, 2026 |
| Malaysia | 9.6 | 6.9 to 12.0 | Cushman & Wakefield, 2026 |
| Australia | 10.0 | 7.9 to 12.1 | Cushman & Wakefield, 2026 |
| Frankfurt | 11.6 | n/a | Turner & Townsend, Nov 2025 |
| London | 12.0 | n/a | Turner & Townsend, Nov 2025 |
| Singapore | 14.5 | n/a | Turner & Townsend, Nov 2025 |
| USA (34 markets) | 15.2 | 11.7 to 18.7 | Cushman & Wakefield, 2026 |
| Tokyo | 15.2 | n/a | Turner & Townsend, Nov 2025 |
| Japan (national) | 16.0 | 13.0 to 19.2 | Cushman & Wakefield, 2026 |
The two sources use different specifications, so compare within one source. A 100 MW build in India costs about US$220m less than in Malaysia (Cushman & Wakefield). AI-ready builds cost about 7 to 10% more (Turner & Townsend, US data).
Colocation rent (per kW per month)
| Market | Price | US$ | Deal size and basis | As of | Source |
|---|---|---|---|---|---|
| Mumbai | ₹7,000 to ₹10,000 (250 kW to 1 MW); ₹6,000 to ₹7,500 (5 MW+) | 73 to 105; 63 to 79 | 5-7 kVA racks | H1 2025 | Cushman & Wakefield |
| Chennai | ₹7,500 to ₹8,500 (250 kW to 1 MW); ₹6,000 to ₹7,000 (5 MW+) | 79 to 89; 63 to 73 | Same | H1 2025 | Cushman & Wakefield |
| Hyderabad and Delhi NCR | ₹7,000 to ₹8,500 (250 kW to 1 MW); ₹6,000 to ₹7,000 (5 MW+) | 73 to 89; 63 to 73 | Same | H1 2025 | Cushman & Wakefield |
| Northern Virginia | US$190 to 235 | 190 to 235 | 250-500 kW; vacancy 0.3% | Q1 2026 | CBRE |
| Frankfurt | US$235 to 265 | 235 to 265 | 250-500 kW; vacancy 5% | Q1 2026 | CBRE |
| Tokyo | Average US$280 | 280 | Asking rent; vacancy 6% | Q1 2026 | CBRE |
| Sydney | Average US$188 | 188 | Asking rent; vacancy 4.5% | Q1 2026 | CBRE |
| Singapore | US$330 to 475 (average US$403) | 330 to 475 | Asking rent; vacancy 2% | Q1 2026 | CBRE |
Indian figures are the latest city rents Cushman & Wakefield published (H1 2025), so they are about a year older than CBRE's. Whether power is included differs by market. AI-training facilities command about a 60% lease premium (JLL, Jan 2026). Live capacity and vacancy by city are on the operators and live capacity page.
Other cost and schedule factors
Grid connection, equipment lead times, labour, cooling and tax
| Factor | India | Elsewhere | Source |
|---|---|---|---|
| Grid connection | No published India-wide lead time. National shortage was 0.03% in FY2025-26, but site substations and sanctioned load decide timing | More than 4 years in primary markets (JLL) | JLL; Cushman & Wakefield |
| Long-lead equipment | Imported packages ran 2 to 4 weeks late in H1 2026 | Global average 33 weeks; generators 40-45 weeks; transformers 20-32 weeks | Turner & Townsend; JLL |
| Construction labour and materials | Tender prices forecast to rise 3 to 5%, driven mainly by labour and specialist MEP (mechanical, electrical, plumbing) demand; labour shortages of 30 to 35% across 71 projects in H1 2026; 10 to 15% cost escalation where imported raw materials are involved | n/a | Turner & Townsend, 13 Aug 2026 |
| Cooling and efficiency | Hot, humid coastal hubs make cooling the biggest non-IT load; liquid cooling narrows the gap | Cool climates get more free-cooling hours | Turner & Townsend; Uptime Institute |
| Tax | Finance Act 2026: tax exemption to tax year 2046-47 for a foreign company's income from using an Indian company's data centre services (conditions apply). Parliament passed amendments on 10 Aug 2026, but we could not confirm presidential assent or rules (Oct 2026). General information, not tax advice | n/a | Income-tax Act 2025, Schedule IV item 13C; Taxation and Other Laws (Amendment) Bill 2026 |
Want this checked for your own site, power contract or launch plan? See DC advisory.
Sources for this section (17)
- MERC. Order in Case No. 75 of 2025 (MSEDCL tariff). 25 Mar 2026
- TNERC. Suo-motu Tariff Order No. 6 of 2025. 30 Jun 2025
- TGERC. Retail Supply Tariff Schedule FY2026-27. 2026
- UPPCL (UPERC-approved). Tariff and rate schedule approved for FY2026-27. 6 Jul 2026
- KERC. Tariff charges approved for the control period. 27 Mar 2025
- APERC. Tariff for retail sale of electricity, FY2026-27. 25 Mar 2026
- SP Group. Historical electricity tariff (Q4 2026). 1 Oct 2026
- Eurostat. Electricity prices for non-household consumers (nrg_pc_205). 9 Oct 2026
- US EIA. Electric Power Monthly, Table 5.6.A. 24 Sept 2026
- GlobalPetrolPrices. Electricity prices around the world. Mar 2026
- Turner & Townsend. Data centre construction cost index 2025-2026. 5 Nov 2025
- Turner & Townsend. India's construction shifts focus from cost to capacity. 13 Aug 2026
- CBRE. Global Data Center Trends 2026. 17 Jun 2026
- Cushman & Wakefield. India Data Centre H1 2025 Update (city rents). 2025
- JLL. Global data center sector to nearly double to 200GW. 6 Jan 2026
- ECB. Euro foreign exchange reference rates (USD, IDR, JPY, MYR, SGD). 13 Oct 2026
- RBI. FBIL reference rate, INR per US$ 95.2477. 13 Oct 2026
Power, build and rent costs
Frequently asked questions
On FY2026-27 industrial tariffs, indicative all-in prices run from about ₹6.2 per kWh (US$0.065) in Andhra Pradesh to ₹10.9 (US$0.114), Maharashtra's average billing rate for high-tension industry. Uttar Pradesh is about ₹6.6 to ₹7.7, Karnataka about ₹7.5 and Telangana about ₹7.8 to ₹8.8, while Tamil Nadu is about ₹9.0 on FY2025-26 rates. Our state estimates assume a flat 24x7 load at 85% load factor and exclude electricity duty, fuel adjustment and open access charges.
It is cheaper than Singapore and Europe, and in the same range as US states. Singapore's regulated rate is US$0.184 to US$0.192 per kWh (SP Group, Q4 2026), and users taking 70 to 150 GWh a year pay an average US$0.201 in Ireland, US$0.154 in Germany and US$0.140 in the Netherlands (Eurostat, H1 2026). US industry pays an average US$0.101 in Virginia and US$0.071 in Texas (US EIA, Jul 2026). Foreign figures use different bases, so treat them as a guide, not a like-for-like quote.
Each state distribution company (DISCOM) decides whether your connection is billed as industrial or commercial, and the gap can be large. In Maharashtra, high-tension (HT) commercial supply averages ₹16.74 per kWh against ₹10.88 for HT industry in FY2026-27, about 54% more (MERC). In Karnataka the current order makes HT commercial slightly cheaper than industry, and several state data centre policies, such as Tamil Nadu's 2021 policy, help secure industrial treatment. This is general information, not legal advice: get the category confirmed in writing for each connection.
About US$7.4m per MW (about ₹70 crore), within a range of US$5.9m to US$9.0m, excluding land and IT equipment (Cushman & Wakefield, 2026). On the same basis Malaysia costs US$9.6m, the USA US$15.2m and Japan US$16.0m, so a 100 MW build in India costs about US$220m less than in Malaysia. Turner & Townsend puts Mumbai at US$6.64m (cited Feb 2026) against US$14.5m in Singapore (Nov 2025); compare within one source, as specifications differ. Indian tender prices are forecast to rise 3 to 5%, driven mainly by labour and specialist mechanical, electrical and plumbing (MEP) work (Turner & Townsend, 13 Aug 2026).
Mumbai rents were ₹7,000 to ₹10,000 per kW a month (US$73 to US$105) for 250 kW to 1 MW and ₹6,000 to ₹7,500 (US$63 to US$79) for 5 MW or more, while Chennai, Hyderabad and Delhi NCR ranged from ₹6,000 to ₹8,500 (Cushman & Wakefield, H1 2025). CBRE's Q1 2026 asking rents were US$190 to US$235 in Northern Virginia, US$235 to US$265 in Frankfurt and US$330 to US$475 in Singapore. The Indian figures are about a year older, and whether power is included differs by market. Space for AI training commands about a 60% lease premium (JLL, Jan 2026).
Generally yes. Cushman & Wakefield and Invest India (2026) report green energy open access from 100 kW, with deemed approval after 15 days; we have not checked this against each state's rules. Buying from a third party adds a cross-subsidy surcharge of ₹2.11 per kWh in Maharashtra, ₹1.99 in Tamil Nadu and ₹1.37 to ₹1.71 in Andhra Pradesh (Vizag DISCOM), plus wheeling of ₹0.81 to ₹1.04 (FY2025-26 to FY2026-27), though captive or group captive set-ups (26%+ ownership and 51%+ consumption) are exempt from cross-subsidy and additional surcharges. This is general information, not legal advice, and we found no sourced all-in cost for round-the-clock green power.
FlexiCloud DC advisory
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FlexiCloud DC advisory can check the tariff category, green power options and power pass-through terms in your own colocation or power offer before you sign.
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