India has emerged as the leading data centre hub in the Asia-Pacific region (excluding China), surpassing established players like Singapore, Australia, South Korea, Japan, and Hong Kong in installed capacity. This reflects the escalating demand for data services in one of the world’s fastest-growing major economies.
With a current installed capacity of 950 MW and projections indicating an additional 850 MW by 2026, India is poised to solidify its position as a key player in the Asia-Pacific data centre landscape. According to global real estate consultancy CBRE, India’s growth trajectory in the data centre sector surpasses that of other major Asia-Pacific countries.
Anshuman Magazine, Chairman & CEO – India, South East Asia, the Middle East & Africa, CBRE, highlighted India’s allure for multinational corporations (MNCs) seeking to expand their digital footprint and migrate from other Asian markets due to supply constraints. Sustained demand is expected from sectors like banking, financial services, and insurance (BFSI), technology firms, and cloud service providers, who are exploring alternative solutions such as co-location and hyperscale facilities.
Between 2018 and 2023, India’s data centre industry attracted investment commitments exceeding $40 billion from both global and domestic investors. Maharashtra, Uttar Pradesh, West Bengal, and Tamil Nadu emerged as top states attracting cumulative investment commitments. Moreover, global hyperscalers are increasingly eyeing New Delhi as a prime market for expansion, with many opting for customized build-to-suit (BTS) facilities.
Following India, Japan recorded the second-highest regional data centre capacity at 892 MW, followed by Australia, Singapore, Hong Kong, and South Korea. In 2023, the addition of 255 MW of new supply resulted in a total stock of approximately 1,030 MW by the year end. This rapid growth is expected to continue in 2024, with planned supply exceeding 330 MW across various cities.
The total floor space stock for data centres in India reached 16 million sqft in 2023. Data centres remain among the top three preferred alternative assets for investors in the Asia-Pacific region, including India. Global investors retain a keen interest in the Indian data centre market, with many exploring partnerships and joint ventures with local operators. M&A activity among operators is expected to rise in the coming years to address the growing number of players in the market.
In 2023, over 85 per cent of the $27 billion committed investment was directed towards the development of hyperscale facilities.
Link to article –
India overtakes APAC countries Australia, Japan, Singapore, Hong Kong in data centre capacity
