India's data center capacity could exceed 8GW by 2030
What's the story
India's data center capacity is projected to grow to the higher end of the estimated 5-8GW range by 2030, a new report from international brokerage firm Bernstein has said. The current capacity stands at around 1.5GW. The growth is largely driven by demand for land and power infrastructure as key factors in future expansion plans.
Market leaders
Adani, Reliance well-positioned for data center boom
The report highlights that Adani Group and Reliance Industries are best positioned to ride the data center boom. This is due to their access to land, power infrastructure, and transmission networks. The competition for land in Navi Mumbai has intensified with transaction values hitting new highs. Access to substations and power connectivity has also become critical as developers rush to secure capacity for future projects.
Cost analysis
Data center construction costs and operating models
Bernstein estimates that data center construction costs, excluding compute infrastructure, are around ₹50 crore per MW in India. This is lower than comparable costs in the US. The report also identifies two main operating models in the global data center industry: colocation and cloud providers/neocloud operators. Each model has its own financial implications and risks associated with technology obsolescence.
Advantage
Power access as a competitive advantage
Drawing parallels with the US, Bernstein says power access is the biggest competitive advantage for data center operators. The report notes an average wait time of around six years for power interconnection in the US. This has prompted even some crypto miners with existing power offtake agreements to pivot toward the data center colocation model.
Investment edge
Adani Group's distinct advantage in data center investments
Bernstein believes that the Adani Group is particularly well-positioned to benefit from a surge in data center investments. The group's combination of land availability, transmission connectivity, merchant power capacity and access to thermal equipment gives it a distinct advantage in supporting future data center demand. Within Bernstein's coverage universe, Adani Green Energy and Adani Power were identified as having an unmatched ability to supply power to data centers.