India overtakes APAC majors in data centre capacity

Chennai: India has overtaken countries in the Asia-Pacific region, including Australia, Hong Kong and Japan, in terms of data centre capacity.

Excluding China, India is the top country in APAC countries with the highest operational data centre capacity of 950MW. It has overtaken major countries like Australia, Hong Kong SAR, Japan, Singapore, and Korea, according to CBRE.

India is also likely to record the highest capacity addition of 850 MW during 2024-2026, higher than major APAC countries. After India, Japan recorded the second-highest data centre capacity with 892 MW.

In 2023, India had made an addition of 255 MW of new supply compared to 200 MW in 2022, resulting in a total stock of both operational and non-operational capacity of around 1,030 MW by the end of the year. This accelerated growth is expected to continue in 2024, with a planned supply of over 330 MW across various cities, potentially increasing the stock by 30 per cent annually to reach around 1,370 MW. Further, India is set to cross a total capacity of 1800 MW by 2026.

India's data centre sector, with its resilience and potential for attractive returns, has emerged as a beacon of opportunity for investors. Between 2018 and 2023, India secured investment commitments of more than $40 billion from both global and domestic investors.

Global investors retain a strong interest in the Indian data centre market, with many groups eyeing partnerships and joint ventures with local operators. Merger and acquisition activity among operators is likely to pick up in the coming years due to the growing number of players, which should result in some consolidation before the market becomes too fragmented.

The top states that dominated the cumulative investment commitments include Maharashtra, Uttar Pradesh, West Bengal, and Tamil Nadu and more than 60 per cent of the upcoming supply would be concentrated in Mumbai and Chennai.

Mumbai remains the dominant market with over 50 per cent share in total stock in India as of 2023. Reliable power supply, broadband connectivity, and availability of skilled manpower contribute to Mumbai’s appeal as a sought-after destination. Chennai, with an 18 per cent share, follows as the second most popular market due to its strategic location on the east coast, facilitating strong connectivity to East Asia.

( Source : Deccan Chronicle )
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