Mumbai third in Asia Pacific region in data centre capacity: Report

Only Indian city in the ranking, had a 'standout growth story' in the first quarter of CY23

Mumbai is the third largest market in Asia Pacific in terms of total data centre capacity, chasing Shanghai and Tokyo as the region logs "exponential growth" in internet usage.

Mumbai has a total capacity of 2,337 megawatt (MW), Tokyo has 2,575 MW and Shanghai is on top with 2,692 MW, according to a report by Knight Frank, a real estate consultant.

Mumbai is the only Indian city which had a "standout growth story" in the first quarter of the calendar year 2023 (Q1 CY23), with its total capacity expansion surpassing the 2,000-MW milestone. Supply movements have moderated compared to previous quarters, with more than 40 per cent of current live capacity absorbed throughout CY22.

The report, published in partnership with data centre research and analytics platform DC Byte, studied nine emerging markets: Bangkok, Hong Kong, Kuala Lumpur, Mumbai, Seoul, Shanghai, Singapore, Sydney, and Tokyo.

Shanghai, Tokyo, Sydney, Singapore, and Hong Kong have a high percentage of their capacity in the live segment, indicating more commissioning and demand.

Sydney, with a total capacity of 1,746 MW, was fourth in the list. It was followed by Seoul (1,354 MW) and Singapore (1,227 MW).

Asia Pacific cities are expanding their data centre capacity and building on the strong absorption seen in CY22. Bangkok has expanded its capacity nearly 30 per cent since the beginning of the year. Kuala Lumpur’s capacity expansion in Q1 2023 is a third of the total supply added in all of 2022, it said.

"The data centre sector has witnessed a remarkable acceleration in recent years, driven by the exponential growth of internet usage across commerce, social media, entertainment, and cloud adoption," said Shishir Baijal, chairman and managing director, Knight Frank India.

As data centres become an asset class, investors are using various strategies such as mergers and acquisitions (M&As), joint ventures, and land acquisitions to tap into the sector. Mumbai has emerged as a key beneficiary with significant growth in its total capacity, Baijal said.