According to a report by CBRE, the data centre market in India has attracted investment commitments of about $21.4 billion in the first half (H1) of 2023. This implies more than 60 per cent of the proposals received in five years, as the country’s growing digital infrastructure, increasing technology penetration and regulatory push make it an attractive destination for both global and domestic investors in the sector. Since 2018, the segment has received investment commitments worth $35 billion, with most of that coming in the year 2023.
The report added that hyperscale data centres dominated most of the investments with a share of about 89 per cent, with colocation data centres accounting for the rest of 11 per cent. Maharashtra, Tamil Nadu, West Bengal, and Uttar Pradesh dominated in attracting the investment commitments.
According to the report, India’s data centre capacity is expected to cross 1,300 MW by the end of 2024 from 880 MW spanning over 13 million sq ft in June 2023. It estimates the capacity at the end of 2023 at 1,048 MW.
Further, the report shows that Mumbai, Chennai, Bengaluru, and the National Capital Region accounted for about 87 per cent of the country’s data centre stock as of June 2023. Overall, data centre occupancy levels in India stood at about 75-80 per cent, which is likely to improve by the end of the year.
Data centre operators are also likely to expand in tier-2 markets to capture the growing demand among financial services firms and online streaming platforms to establish data centre facilities closer to the consumption hubs.
