Data center industry attracts investment of US$ 21.4 bn in H1 ‘23

The Indian data center market has attracted investment commitments totaling approximately US$ 21.4 billion in the first six months of 2023,, representing over 60% of the proposals received in the past five years according to a report from real estate consultancy CBRE .

This surge in investment is attributed to India’s expanding digital infrastructure, growing technology penetration, and regulatory initiatives, making it an appealing destination for both global and domestic investors in the sector, according to a report.

The report anticipates India’s data center capacity to surpass 1,300 MW by the end of 2024, up from 880 MW spanning over 13 million sq ft in June 2023. The estimated capacity at the end of 2023 is 1,048 MW. The growth in the data center segment is expected to persist into 2023-24, with nearly 500 MW currently under construction across various cities. Mumbai, Chennai, and Bengaluru are projected to collectively dominate the data center stock with an 80% share by the close of 2024.

Since 2018, the data center segment has garnered investment commitments amounting to US$ 35 billion, with a significant portion occurring in the current year. Hyperscale data centers dominated the investment landscape, accounting for approximately 89%, while colocation data centers comprised the remaining 11%. The states of Maharashtra, Tamil Nadu, West Bengal, and Uttar Pradesh stood out as key recipients of these investment commitments.

Experts said that increasing population, enhanced use of technology, social media and online streaming platforms, rising need for data localization, and fast improving digital infrastructure would continue to boost demand for data centers in India. This, in turn, is likely to result in the country becoming one of the largest DC destinations across APAC over the next decade.

Source: Economic Times