Is India Building Enough To Power Its Digital Transformation

CHART-2: OPERATOR-WISE BREAK-UP OF EXISTING AS WELL AS UPCOMING INSTALLED CAPACITY

CHART-3: CITY-WISE BREAKUP OF EXISTING AND U/C / PLANNED SUPPLY

TOP 7 CITY-WISE COLO CAPACITY (AS OF 2023)

TOP 7 CITY WISE FUTURE COLO SUPPLY PIPELINE, 2024 – 2028

Operator wise Colo Capacity

8%

4%

NTT STT Sify CtrlS

OPERATOR WISE COLO CAPACITY (AS OF 2023)

2%

1%

8%

3%

4%

4%

977 MW Total Colo Capacity as of 2023

5%

9%

Nxtra Yotta AdaniConnex Web Werks PDG Others

31%

10%

11%

11%

977 MW Total Colo capacity as of 2023

2.32 GW* Additional Colo capacity (UC & Planned)

54%

51%

15%

11%

11%

14%

COLO OPERATORS SHARE IN UPCOMING PAN INDIA IT LOAD (2024-2028) 2.32 GW Additional Colo capacity

15%

15%

CtrlS 10%

AdaniConnex 9%

Sify 11%

NTT 18%

Yotta 7%

Web Werks 4%

Capita Land 6%

Mumbai

Chennai

Delhi

Bengaluru

Pune

Hyderabad

Kolkata

Source: C&W Research *Note: 2.32 GW is not a cumulative figure but the new capacity addition by 2028

BAM Digital Realty 3%

Ever Yondr 3%

Nxtra 12%

STT 10%

Others 7%

While the operator landscape is rapidly evolving, the concentration of operator activity remains consolidated in the top 3 cities of Mumbai, Chennai, and Delhi-NCR, although Hyderabad has been fast emerging as a preferred destination.

Source: C&W Research Note: The figures in the chart above are based on announced/publicly available figures.

The operator landscape is changing rapidly as new entrants make their way into India’s DC space. As of 2023, the top-5 operators account for 77% of India’s Colo installed capacity. However, dominance of top-5 is likely to get reduced to ~51%% in the medium term. Players such as Adaniconnex, Colt, BAM Digital, CapitaLand are aggressively expanding in this space. TOP-3 DC MARKETS TO REMAIN SIGNIFICANT EVEN WHEN MARKET LANDSCAPE IS CHANGING Mumbai remains the dominant market by supply, accounting for 54% of the overall installed Colo capacity in India. Chennai and Delhi-NCR complete the list of top-3 Colo markets, accounting for more than three-fourths of the market share in India. The increased capacity addition estimated for the near future, as well as the entry of new operators, is likely to alter the market structure across the top 7 cities, primarily with the emergence of Hyderabad as a critical data center location. Hyderabad is expected to join the current top markets of Mumbai, Chennai, and Delhi-NCR due to several under-construction and planned developments by players such as CapitaLand, CtrlS, Sify, and Adaniconnex. Many more facilities are in the planning stages, with land sites already acquired

HYPERSCALE DCS: WHAT’S GOING-ON IN THAT SPACE?

A significant quantum of self-build projects of hyperscalers such as AWS and MS Azure are also expected to go live by 2027. AWS launched its new cloud region in Hyderabad in 2022 with its greenfield captive cloud data centre going live. The total operational cloud self-build capacity stood at 68 MW as of end-2023 with u/c and planned capacity of 96 MW and 226 MW, respectively. Hyperscalers have also moved ahead on land banking, with AWS and MS Azure acquiring land parcels across Mumbai, Thane, Hyderabad, and Pune for future development.

DATA CENTER REPORT - 2024 | 11

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