skip to content

India overtakes APAC countries Australia, Japan, Singapore, Hong Kong in data centre capacity

India’s data center industry has experienced rapid growth, positioning the country as the leading hub in the Asia-Pacific region (excluding China). This growth has outpaced established players like Singapore, Australia, South Korea, Japan, and Hong Kong regarding installed capacity, reflecting the escalating demand for data services in one of the world’s fastest-growing major economies.

With its current installed capacity of 950 MW and projections indicating an additional 850 MW by 2026, India is strategically positioned to solidify its role as a critical player in the Asia-Pacific data center landscape. This is further supported by global real estate consultancy CBRE, which states that India’s growth trajectory in the data center 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, insurance (BFSI), technology firms, and cloud service providers, which are exploring alternative solutions such as co-location and hyperscale facilities.

India’s data center industry has been a magnet for investment commitments, attracting over $40 billion between 2018 and 2023 from both global and domestic investors. This significant influx of capital has been directed towards states like Maharashtra, Uttar Pradesh, West Bengal, and Tamil Nadu, which have emerged as top destinations for data center investments. The interest from global hyperscalers, particularly in New Delhi, further underscores the attractiveness of the Indian market.

Following India, Japan recorded the second-highest regional data center 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 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 centers in India reached 16 million sq ft in 2023. Data centers remain among the top three preferred alternative assets for investors in the Asia-Pacific region, including India. Global investors are keenly interested in the Indian data center 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 percent of the $27 billion in investment was directed towards developing hyperscale facilities.

Share your love

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

error: Unauthorized Content Copy Is Not Allowed