India outpacing Asian rivals in data center capacity, report says

Major investments by Amazon and Reliance drive lead over Japan and Singapore

20240531 Data center and Mobile payment

Demand for data usage in India is booming due to increasing consumption of payments, e-commerce and other digital services. © Getty Images

AKIRA HAYAKAWA and SAYAN CHAKRABORTY, Nikkei staff writers

NEW DELHI/BENGALURU -- India is outpacing Japan, Singapore and Hong Kong in data center investment, according to a new industry report, a trend driven by major funding commitments by global heavyweight Amazon and domestic conglomerates like Reliance Industries.

India's data center boom was inevitable, analysts said, due to its internet-savvy population accelerating its consumption of payments, e-commerce and other digital services, and tech companies setting up offices in the South Asian nation, drawn by its large talent pool.

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