News Brief

India Surpasses Australia, Hong Kong, Japan, Singapore And South Korea With Record 950MW Data Centre Capacity

Swarajya Staff

May 15, 2024, 05:14 PM | Updated 05:12 PM IST

Representative Image
Representative Image

India has surpassed major countries like Australia, Hong Kong, Japan, Singapore and South Korea, becoming the leading nation in the Asia-Pacific region (excluding China) with the highest data centre capacity, totalling 950 MW.

Following India, Japan recorded the second-highest data centre (DC) capacity with 892 MW, followed by Australia at 773 MW, Singapore at 718 MW, Hong Kong at 613 MW, and South Korea at 531 MW, as per a report by The Economic Times.

“India, with its favourable market conditions, 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 corporations, and cloud service providers as they explore alternative solutions such as colocation and hyperscale facilities,” said Anshuman Magazine, chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE.

Data centres remain among the top three preferred alternative assets for investors in the APAC region, including India.

Global investors maintain a strong interest in the Indian data centre market, with many groups looking at partnerships and joint ventures with local operators.

M&A activity among operators is likely to increase in the coming years due to the growing number of players, which should lead to some consolidation before the market becomes too fragmented.

“Recognising the potential, we plan to invest over Rs 10,000 crore to develop a 307-megawatt data centre across three locations - Manesar, Rai, and Panchkula. 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,” said Amit Sarin, managing director, Anant Raj Limited.

Between 2018 and 2023, India secured investment commitments of more than $40 billion from both global and domestic investors.

The top states dominating the cumulative investment commitments include Maharashtra, Uttar Pradesh, West Bengal and Tamil Nadu.

India is also attracting global hyperscalers who view it as a prime market for expansion, with many opting for customised build-to-suit facilities.

Get Swarajya in your inbox.