India Surpasses Australia, Hong Kong and others in terms of Data Center Capacity

India has achieved a significant milestone by overtaking major countries such as Australia, Hong Kong SAR, Japan, Singapore, and Korea to become the leader in data center capacity in the Asia-Pacific region (excluding China), with a capacity of 950 MW. According to CBRE, India is also projected to have the highest capacity addition, amounting to 850 MW, during the 2024-2026 period, surpassing other major APAC countries.

The sector has seen considerable investments from global operators, real estate developers, and private equity funds, highlighting the growing importance and potential of India's data center market. Henry Chin, Global Head of Investor Thought Leadership and Head of Research at CBRE APAC noted that while 2023 was relatively slow for leasing due to a global economic slowdown, activity picked up significantly in the fourth quarter, with numerous deals in the pipeline.

Following India, Japan has the second-highest data center capacity at 892 MW, with Australia (773 MW), Singapore (718 MW), Hong Kong (613 MW), and Korea (531 MW) trailing behind. In 2023, India added 255 MW of new supply, up from 200 MW in 2022, bringing the total capacity to approximately 1,030 MW by the end of the year. This growth trajectory is expected to continue, with over 330 MW of planned supply in 2024, potentially increasing the stock by 30% annually to around 1,370 MW.

The total data center stock in India was 16 million square feet in 2023. Anshuman Magazine, Chairman & CEO of India, South-East Asia, Middle East & Africa at CBRE, emphasized that India’s favorable market conditions are attracting multinational corporations (MNCs) looking to expand their digital services and relocate from other Asian markets facing supply constraints. There is sustained demand from BFSI firms, technology corporations, and cloud service providers, who are exploring alternative solutions such as colocation and hyperscale facilities.