Nvidia HGX H100 in Yotta Data Services PVT. Data Center in Navi Mumbai, India, on Thursday, 14 March, 2024.
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This report is from the “Inside India” newsletter in CNBC for this week, which brings you a time and time in time and market comments on emerging power. Subscribe here.
The big story
There is a golden rush in the emerging data center industry in India but fast -growing, with global giants and billionaires and even luxury real estate developers.
The current data center in India is about 1.2 GB – just a small part of the global capacity – but the market has been set for more than twice, as 3 GB cross over the next five years, according to a report in May by Colllier Real Estate and Investment Management.
This growth captures the international data center companies, Indian billionaires, and even luxury real estate developers, all of whom are keen to share their demands, while many see the backbone of the country’s digital future.
In July, Google And according to what was reported in talks With the government of Andra Pradesh to create a 1 GB facility. A month later, Sam Al -Tamman from Openai Declare His company was exploring plans for the Gigawatt 1 data center in India.
These movements confirm the ambition: The facilities measured are now planned in dozens of megawatts in Gigawatts, often by “superfuguors”, or companies that consume huge amounts of computing power. One of Gigawatt is 1000 MW of power, while Megate is a million watts.
It is not surprising, fierce competition. More than 15 players are chasing its share in the market-starting with global heavy weights such as NTT in Japan, and STT GDC supported by Temasek and the US operator, including Adani Group and Reliance Industries.
Real estate developers are also axis. The YOTTA group of the Yotta group, based in the Delhi -based YOTTA group, is based in the Pune -based RAJ developer, surrounded by housing to hyperactivity, where billions are betting to re -put themselves from hiding and offices to digital real estate owners.
What leads the boom?
At the heart of the mutation is a structural shift in the request. About 60 % of the data center customers are institutions, and 30 % are Easter, and artificial intelligence users are about 10 %, according to data from the real estate consulting company Anaruk Capital.
“With the high burden of Amnesty International, we expect that the use of companies will remain fixed, but the use of Easter may rise to about 35 %. It is possible that the specific demand for artificial intelligence users will increase between 20 % and 25 %,” said Chophit Agarawal, CEO of ANAROCK.
Some examples of the two -semester databases are widely included, such as Microsoft, Amazon Web Services and Google.
Alok Bajpai, the administrative director of NTT Data Systems, told CNBC that digitization of banking services in India and the localization of data that require storing Indian financial statements in the country has prompted the demand for institutions data. He added that the emergence of e -commerce services, followed by cloud infrastructure companies, brought the second wave of demand for the data center.
The third wave is expected to come from the burdens of artificial intelligence.
Last week, Equinix expanded to a second term in India through the first artificial intelligence facility in Chennai.
60 % of Equinix revenue comes from customers who work with the company in all three regions, Americans, Europe and Asia and “they are keen to expand in India,” said Manoj Paul, the administrative director of Equinix, said last Friday in “inside India” in CNBC.
Customer clients currently lead most of the demand for the data center in India, but their needs are relatively modest. As customer profiles change, facilities are designed to deal with much larger work burdens.
“Earlier, it rarely demanded the capacity of 10 megawatts. With excessive, the requirements have risen to 25 megawatts, and in some cases 50 MW. With the burdens of Amnesty International work, this can rise to 75-100 MW.”
Why India?
On paper, India has many natural advantages. Markets such as Japan, Australia, China and Singapore have matured in the Asia Pacific region. Singapore, one of the oldest data center centers in the region, has a limited space to publish large -scale data centers due to land availability problems.
India has an abundant space for data center developments on a large scale. Compared to the data center centers in Europe, the energy costs in India are relatively low. Besides the increasing ability of renewable energy in India-decisive for energy-thirsty data centers-the economy begins to look convincing.
Local demand, which is fueled by e-commerce, the main engine for the growth center of the data center in recent years-and the possible new rules for storing social media data, enhances the issue.
Simply: India enters a sweet spot where each of the international cloud providers, artificial intelligence operators and local digitization are converged to create one of the hottest data center markets in the world.
Who is in the race
Currently, global majors still dominate. NTT and STT GDC Data Data Centers Top Classion of Category in India, according to experts. Local operators such as CTRLS and NXTra owned by Aartel, Princeton Digital collection owned by Warburg Pincus, in this mix.
But it is the aspirations of Indian billionaires that overwhelm the scene of the Indian Data Center. The Gutam Adani joint project with Edgeconnex, based in the United States, Adaniconnex, is currently less than 40 MW, but it expands to 210 MW soon.
Accreditation of Mokish Ambani It is said Planning for the 3 and 3 billion dollar data center-an investment between 20 and 30 billion dollars-a project that can reshape the scene in the industry.
The smaller developers that have turned into the occupiers also move. Annant Raj developer, developer of a residential townHe announced plans to invest $ 2 billionTargeting 300 megawatts of capacity by 2032. Since announcing its entry into the sector in 2023, the company’s share price has increased more than twice.
Road barriers
But India is not an easy place to build.
Unlike other markets with clear regulatory frameworks, the developers of the India Data Center faces a maze of 30 approval from different agencies, according to industry experts. “In India, the data center operators often face delays due to the lack of uniform regulations throughout the states,” Night Frank, the real estate consultant in a report in April.
Looking at the state -based COLT case, which He bought the land In Mumbai in 2018 to build a 100 -megawatt facility. It took six years for the site To liveWith 22 megawatts of operational power. To accelerate growth, Colt entered $ 1.7 billion Joint project With the infrastructure of the local developer RMZ in 2024, with the aim of building 250 megawatts of capacity via Navi Mumbai and Chennai.
The obstacles extend to the earth as well.
Data centers require large parcels free of litigation in specific geographical areas. manY The real estate advisor, who wishes not to be identified, said that the data center operators are supported by private companies or American technology companies, and they cannot obtain land without a clear title, because this may raise corporate governance issues.
These organizational delays have created opportunities for Indian real estate groups, which buy land, resolve conflicts, and sell them to international operators. In some cases, they go further – building and leasing data centers or even running them directly.
However, the flood of expatriates risk increasing supply and price war, especially in the emerging market. “If you compare India to the Indonesian market, we are largely decreased on prices due to the price competition led by a few players to obtain surplus accounts.”. India.
She added that there is some monotheism in the market for the next 2-3 years.
Currently, the race is wide open. But with dozens of operators chasing the same prize, monotheism appears to be inevitable.
You choose the top TV on CNBC
Manoj Paul, Managing Director of Equinix India, discussed the opening of the new data center of the Higher Organization in Chennai, in the southern state of Tamil Nadu.
Daniel Lam of Standard Chartrad Reth Solichns said that the Indian markets “are drifting, not getting rid of the threats of American tariffs.
The CEO of Vinfast ASIA, Pham Sanh Chau, said that the company may increase its annual production capacity in India from 50,000 to 150,000 cars, given the first stronger demand than expected.
You need to know
The central bank in India keeps interest rates unchanged. Sanjay Malhotra, the governor of the Reserve Bank in India, said that although inflation was largely ran in the first quarter, Growth can crumble In the second half of the fiscal year due to global trade uncertainty.
Medicines are identified in the United States of America, but they leave the investors tense. Despite the latest American pharmaceutical tariff It did not affect the Indian drug makers,, Which mainly issue general drugs to the United States, the shares of most Indian pharmaceutical companies decreased.
Qualcomm in conversations with Tata to take advantage of the Indian chip capacity. Akash Balauala, CEO of Global Operations at Qualcomm and Financial Director, said, We will look to click Chip capacity in India once met the requirements of the company’s node.
Quote from the week
We are considering expanding our factory in India. The process of applying environmental permits for the second stage is taking place. The second stage produces up to 150,000 cars per year. This is thanks to the positive reaction from the market.
– Pham Sanh Chau, CEO of Vinfast Asia
In the market
Indian stock exchanges were closed on October 2 because of the Mahatma Gandhi Gyanthe and Dosara, with the appeal of the trading on Friday.
Upcoming
October 3: India reserve data
October 6: Tata Capital launches 155 billion rupees of public subscription
October 7: LG Electronics India launches 116 billion rupees of public subscription
7-9 October: Global Fintech Fest 2025 in Mumbai
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