Unlocking India's Data Centre Investment Potential

India's DC market is poised to drive the next wave of investments in real estate, unlocking tremendous stakeholder value and superior returns.

Data CentreReal EstateInvestmentIndiaAvendus CapitalReal EstateAug 22, 2024

Unlocking India's Data Centre Investment Potential
Real Estate:Prateek Jhawar, MD & Head, Infrastructure & Real Assets Investment Banking, Avendus Capital, believes that India's DC market will pave the way for the next wave of investments in real estate. This sector has the potential to generate 25%+ IRR with a build-and-sell model, highlighting its potential for superior returns compared to other yielding real asset classes.

As the demand for DC capacity in India is expected to double to 2 GW by 2026, we anticipate heightened transaction activity from both public and private markets. Scaled investments with a vintage of over 4 years are expected to seek listing opportunities, while developers will look to raise larger amounts of capital to fund this growth.

The industry is maturing with the entry of long-term investors with commitments of over USD 250 million per investment, offering de-risked returns. This influx of investment will drive growth and development in the sector, making it an attractive opportunity for stakeholders.

Avendus Capital is a leading financial services firm that provides investment banking, wealth management, and asset management services. With a strong focus on infrastructure and real assets, the firm has established itself as a trusted advisor to clients in the DC sector

Information
The Indian data centre market has been growing rapidly in recent years, driven by increasing demand for cloud computing, big data analytics, and IoT. As the country's digital economy continues to grow, the need for reliable and efficient data centre infrastructure is becoming increasingly important.

Avendus Capital is a leading financial services firm that provides investment banking, wealth management, and asset management services. With a strong focus on infrastructure and real assets, the firm has established itself as a trusted advisor to clients in the DC sector.

Frequently Asked Questions

What is the expected growth rate of the Indian data centre market?

The demand for DC capacity in India is expected to double to 2 GW by 2026.

What kind of returns can developers expect from investing in the DC sector?

Developers can expect to generate 25%+ IRR with a build-and-sell model.

What is driving the growth of the Indian data centre market?

The growth of the Indian data centre market is driven by increasing demand for cloud computing, big data analytics, and IoT.

Who is Avendus Capital and what services do they provide?

Avendus Capital is a leading financial services firm that provides investment banking, wealth management, and asset management services.

What is the role of long-term investors in the DC sector?

Long-term investors with commitments of over USD 250 million per investment are expected to offer de-risked returns and drive growth in the sector.

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