According to a report by Confederation of Indian Industry (CII) and Colliers India, data centres are expected to attract $10 billion in investments over the next three years due to increased demand for storage capacity and rapid growth in internet connectivity.
Since 2020, data centre market in India has experienced remarkable growth post-pandemic, attracting about $7 billion of total investments. Global data centre operators, real estate developers, and private equity funds have been the investors.
According to Colliers India, the data centre stock is expected to exceed 23 million square feet by 2026, catering to a total data centre capacity of around 1800 MW. Notably, Mumbai will account for roughly half of the upcoming supply between 2023 and 2026. Furthermore, investors are capitalising on the data centre revolution, fuelled by data localisation efforts as well. They are looking at the stable income and better yields.
As per the report, global institutional investors and developers have been collaborating with data centre operators to bring operational expertise and market experience to data centre development. Developers are pursuing land banking strategies, by acquiring land for future projects in markets where development sites are scarce.