India: Poised to Become Asia Pacific's Data Centre Powerhouse

India could emerge as a leading data centre hub in Asia Pacific by addressing power challenges and enhancing renewable integration. Structural advantages include cost competitiveness, a skilled workforce, and tax incentives. However, energy demands and regulatory hurdles present significant challenges, necessitating strategic upgrades to infrastructure and policies.

India is on the brink of becoming a major data centre hub in the Asia Pacific region, as highlighted in a recent report by Deloitte. The country must address complex power and grid challenges and align renewable energy integration with rapid digital growth to maximize its potential.

Despite accounting for 20% of global data consumption, India's share of the world's data centres remains below 5%. This highlights a significant growth opportunity, emphasized by Debasish Mishra, Chief Growth Officer of Deloitte South Asia. The report was presented at the India AI Impact Summit, underscoring India's structural advantages like competitive power tariffs.

Policy enhancements, such as proposed tax holidays for foreign cloud service providers, add to India's appeal. However, the country's ambitious data centre expansion poses energy supply challenges. To overcome these, the report recommends boosting renewable integration and standardizing policies to foster a sustainable AI infrastructure.

(With inputs from agencies.)