India tops major APAC countries with the highest data center capacity of around 950 MW in the Asia-Pacific region

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India tops major APAC countries with the highest data center capacity of around 950MW in the Asia-Pacific region (excluding China), overtaking major countries like Australia, Hong Kong SAR, Japan, Singapore, and Korea, according to CBRE South Asia Pvt. Ltd’s report titled ‘Asia Pacific Data Center Trends Q1 2024’.

India tops major APAC countries with the highest data center capacity of around 950MW in the Asia-Pacific region (excluding China), overtaking major countries like Australia, Hong Kong SAR, Japan, Singapore, and Korea, a report by CBRE has said (Representational photo)(Pixabay)
India tops major APAC countries with the highest data center capacity of around 950MW in the Asia-Pacific region (excluding China), overtaking major countries like Australia, Hong Kong SAR, Japan, Singapore, and Korea, a report by CBRE has said (Representational photo)(Pixabay)

India is likely to record the highest capacity addition of around 850 MW during the 2024-2026 period, higher than major APAC countries, it said.

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After India, Japan recorded the second-highest Data centers (DC) capacity with 892 MW, followed by Australia at 773 MW, Singapore at 718 MW, Hong Kong at 613 MW and Korea at 531 MW, it said.

Also Read: Noida, Greater Noida to evolve as data centre hubs

Data centers (DC) continue to rank among the top three preferred alternative assets for investors in the APAC region, including India. The sector has witnessed significant investments from global operators, real estate developers, and private equity funds eager to tap into the country’s data center market. Between 2018 to 2023, India secured investment commitments of more than $40 billion from both global and domestic investors.

The top states that dominated 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 of them opting for their customized build-to-suit (BTS) facilities. In 2023, more than 85% of $27 billion committed is being targeted towards the development of hyperscale facilities.

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The DC industry in India has experienced growth and transformation, with capacity doubling since the start of the pandemic. In 2023, there was an addition of 255 MW of new supply compared to 200 MW in 2022, resulting in a total stock of approximately 1,030 MW by the end of the year.

This growth is expected to continue in 2024, with planned supply of over 330 MW across various cities, potentially increasing the stock by 30% annually to reach around 1,370 MW. The total DC stock in 2023 was around 16 mn. sq. ft. in India, the report said.

Mumbai holds 50% share in total data centers stock in India

Mumbai, known for its status as the financial capital and hosting key landing stations connecting India with the Middle East and Europe, remains the dominant market with over 50% share in total stock in India as of 2023. Reliable power supply, broadband connectivity, and availability of skilled manpower further contribute to Mumbai’s appeal as a sought-after destination.

Chennai, with an 18% share, follows as the second most popular market due to its strategic location on the east coast, facilitating strong connectivity to East Asia.

Notably, more than 60% of the upcoming supply would be concentrated in Mumbai and Chennai, while Delhi-NCR, Bengaluru, and Hyderabad are jointly expected to account for over 30% share, the report said. 

Emerging markets such as Kochi, Jaipur, Ahmedabad, Lucknow, Patna, and Vishakhapatnam are experiencing growth, driven by their strategic locations and improved infrastructure, including enhanced power supply along with fibre and cable connectivity upgrades.

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Total colocation data center capacity currently stands at 1GW, more than double the figure from 18 months ago. New data centre supply is projected to reach up to 250MW annually for the next five years. Top occupier categories anticipated to drive demand include cloud service providers, BFSI firms, Retail, healthcare, entertainment, telecommunications, others.

“India, with its favorable 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 corporates, and cloud service providers as they explore alternative solutions such as colocation and hyperscale facilities. Furthermore, engineering and manufacturing firms, along with technology companies, are likely to establish their own DCs specifically dedicated to R&D labs,” said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE.

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