India outpaces APAC countries in data center capacity addition

New Delhi. According to a report, India has topped among major APAC countries with the highest data centre capacity of 950MW in the Asia-Pacific region (excluding China), surpassing major countries such as Australia, Hong Kong SAR, Japan, Singapore and Korea. Real estate consulting firm CBRE South Asia Pvt Ltd, which recently released ‘Asia Pacific Data Centre Trends Q1 2024’, said India is likely to register the highest capacity addition of 850 MW during the period 2024-2026, higher than leading APAC countries.

After India, Japan recorded the second largest data center (DC) capacity with 892 MW, followed by Australia with 773 MW, Singapore with 718 MW, Hong Kong with 613 MW and Korea with 531 MW. The DC industry in India has experienced remarkable growth and transformation with capacity doubling since the start of the pandemic. In 2023, new supply increased by 255 MW compared to 200 MW in 2022, resulting in a total stock of approximately 1,030 MW by the end of the year. This accelerated growth is expected to continue in 2024 as well, with planned supply of over 330 MW across various cities, potentially increasing the stock by 30 per cent annually to reach approximately 1,370 MW. The total DC stock in 2023 was 16 million sq ft in India.

Data centres continue to be one of the top three preferred alternative assets for investors in the APAC region, including India. The sector has seen significant investments from global operators, real estate developers and private equity funds keen to enter the country’s thriving market. India’s data centre sector, with its flexibility and potential for attractive returns, has emerged as a beacon of opportunity for investors. The attractiveness of the sector is further enhanced by the fact that between 2018 and 2023, India secured investment commitments of over $40 billion from both global and domestic investors. The top states dominating in cumulative investment commitments include Maharashtra, Uttar Pradesh, West Bengal and Tamil Nadu. India is also attracting global hyperscalers who see it as a key market for expansion, with many of them opting for its customised build-to-suit (BTS) facilities. In 2023, over 85 per cent of the committed $27 billion is being targeted for the development of hyperscale facilities.