Since fast and creative data processing is one of the new arbiters of competitive advantage of the modern corporation, data centres are becoming more and more significant to businesses and India, riding its real estate and energy availability has emerged as one of the leaders in this business in the entire Asia Pacific region barring China, The Economic Times has reported. During the rise to the top, India has stolen a march on Singapore, Australia, South Korea, Japan and Hong Kong especially on the parameter of installed capacity.
The states that dominated the cumulative investment commitments and polished the country’s glitter in this market include Maharashtra, Uttar Pradesh, West Bengal, and Tamil Nadu.
According to global real estate consultant CBRE, India has an installed capacity of 950 MW and another 850 MW in in the pipeline by 2026. It would cement India’s position in this region helping it to attract further investments in the data centre business.
Data show that at the end of 2023 Australia had an installed capacity of 773 MW while 314 MW is in the pipeline to be installed between 2024 and 2026. The figures for Japan are 892 MW (end 2023) and 407 MW (between 2024 and 2026) respectively. Singapore stands at 718 MW and 98 MW, South Korea at 531 and 495 MW while Hong Kong has 613 MW and would set up another 296 MW by 2026.
The total floor space stock for data centres in 2023 was 1.6 crore sq ft in India.
“With its favourable market conditions, India is attracting multinational corporations (MNCs) seeking to expand their digital services and relocate from other Asian markets due to supply constraints. Sustained demand is expected from BFSI firms, technology companies, and cloud service providers as they explore alternative solutions, such as co-location and hyperscale facilities,” Anshuman Magazine, chairman & CEO India, South East Asia, the Middle East & Africa, CBRE, told the newspaper.
Experts say global investors retain a strong interest in the Indian data centre market, with many groups eyeing partnerships and joint ventures with local operators. In the next few years merger and acquisition will probably pick up since the number of players is growing in this market.
“Recognising the potential, we plan to invest over ₹10,000 crore to develop a 307MW data centre across three locations – Manesar, Rai, and Panchkula,” Amit Sarin, managing director, Anant Raj told the newspaper.
Between 2018 and 2023, India bloomed as an investment destination for data centres, securing commitments in excess of 4,000 crore from global and domestic investors including real estate developers, and private equity funds.
“Data centre activity began to pick up strongly in Q4 2023, and there is a large volume of deals in the pipeline,” said Henry Chin, global head of investor thought leadership and head of research, CBRE Apac.
The acceleration in growth is expected to continue in 2024 and data indicate about 330 MW in various cities will be on offer.
“The buildings are ready for a 157-MW capacity campus, with the remainder to be developed as greenfield projects. The initial capacity is already operational, and the next phase will be operational in the coming days,” added Amrit Sarin.