India overtakes Australia, Japan, and Singapore in data centre capacity

India has emerged as the leading country in data centre capacity in the Asia-Pacific region, surpassing major nations like Australia, Hong Kong SAR, Japan, Singapore, and Korea, with a total capacity of 950MW. Forecasts suggest India will witness the highest capacity addition of 850 MW between 2024-2026, attracting substantial investments from global operators, real estate developers, and private equity funds. Despite a subdued leasing period in 2023 due to global economic uncertainties, India saw a surge in activity in Q4 2023, with a notable volume of deals in the pipeline. The sector is witnessing significant interest from multinational corporations seeking to expand digital services and relocate from other Asian markets due to supply constraints, with sustained demand expected from BFSI firms, technology corporations, and cloud service providers.

Moreover, India's data centre market remains a top preference for investors in the APAC region, with global investors expressing strong interest in partnerships and joint ventures with local operators. Plans for substantial investment in data centre development across various locations are underway, with initial capacities already operational and future expansions in progress. India's attractiveness for investment is underscored by securing commitments exceeding US$ 40 billion between 2018-2023, with Maharashtra, Uttar Pradesh, West Bengal, and Tamil Nadu leading in cumulative investment. The country's appeal to global hyperscalers as a prime market for expansion, focusing on customized build-to-suit facilities, further solidifies its position as a key player in the data centre market.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.