Is India Building Enough To Power Its Digital Transformation

MARKET UPDATE 2023

105% MORE CAPACITY ADDED IN 2023 COMPARED TO FULL YEAR 2022

CHART-1: INDIA DATA CENTER COLO CAPACITY ADDITION & ABSORPTION IN RECENT YEARS

Total Colo IT Load 977 MW

Current Vacancy Rate 26.3%

Total Hyperscale IT 68 MW

+258 MW

977 MW

1000

1000

+126 MW

. Under Construction Colo IT Load (2024 – 2028) 103 GW

Planned Colo IT Load (2024 - 2028) 1.29 GW

719 MW

Occupied Stock 720 MW

720 MW

800

800

610 MW

+102 MW

593 MW

491 MW

600

600

515 MW

400

400

Data Centre installed capacity (IT Load) across top 7 cities.

200

200

0

0

2021

2022 2023

2020 2021

2022 2023

Installed IT Load (MW)

Total Absorption (MW)

109

MW 139 MW

113 MW

Delhi NCR

Source: C&W Research

OPERATOR-WISE FUTURE COLO SUPPLY PIPELINE (2024-2028) capacity addition in the DC space has been rising every subsequent year post COVID. 2023 has seen an addition of 258 MW which is 105% higher than that of full year 2022. The expectation is that 250+ MW is likely to be added in 2024. RAPID ADDITION OF CAPACITY AND CHANGING OPERATOR LANDSCAPE OVER NEXT FIVE YEARS In the most recent period, enterprises dominating India’s Colo data center market have included NTT, STT, Nxtra, Sify, and CtrlS. These five entities together account for almost 77% of the overall Colo capacity. However, a few new entrants have been expanding quite aggressively, and soon, we will witness entities such as CapitaLand and BAM Digital Realty making deep inroads into the Indian market. There will be immense capacity addition shortly, and the market is poised to witness changes in the operator landscape. New entrants will help the market to diversify and bring in the much-needed volume of inventory.

52 MW

5

301 MW

MW

916 MW

531 MW

Mumbai

Kolkata

27 MW

53 MW

13 MW

Pune

MW

36 MW

Hyderabad

MW

55 MW

23 MW

96 MW

Bengaluru

182

152 MW MW MW 144

Chennai

MW UC Planned

Source: C&W Research

Mumbai accounts for 54% of all existing installed capacity and boasts of having the largest share in u/c and planned capacity. This is followed by Chennai with 15% share of installed capacity and 14% share in u/c and planned capacity. Delhi NCR and Hyderabad are emerging as strong hub of Colo DCs.

Note- Total built up area of colo data centres across the top 7 cities stands at 13 MSF as of 2023; u/c & planned figures are for 2024- 2028

8 | CUSHMAN & WAKEFIELD

DATA CENTER REPORT - 2024 | 9