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.

Related News Articles

India's Economy Needs a Bold Stroke: Redesigning the Capital Gains Tax Structure for Growth
Real Estate

India's Economy Needs a Bold Stroke: Redesigning the Capital Gains Tax Structure for Growth

In order to rebuild growth, India's budget needs to focus on resource mobilization and allocation, and that requires a bold approach, including redesigning the capital gains tax structure and letting the rupee fall to encourage local manufacturing.

July 20, 2024
Read Article
India's Tax Reforms: FM Nirmala Sitharaman Addresses the Controversy
real estate news

India's Tax Reforms: FM Nirmala Sitharaman Addresses the Controversy

Finance Minister Nirmala Sitharaman clarifies the recent tax hikes on various asset classes, including stocks and real estate, aimed at achieving a more balanced tax framework.

July 30, 2024
Read Article
Pune Real Estate Market Sees Significant Boost as Prestige Exora Business Parks Buys 4.57-Acre Land Parcel for ₹200 Crore
real estate news

Pune Real Estate Market Sees Significant Boost as Prestige Exora Business Parks Buys 4.57-Acre Land Parcel for ₹200 Crore

Pune real estate market witnesses a 25% year-on-year increase in property registrations in July 2024. Prestige Exora Business Parks buys 4.57-acre land parcel in Kharadi for ₹200 crore.

September 3, 2024
Read Article
Revolutionizing Real Estate: Navigo's 3D Solution for Home Buyers
real estate news

Revolutionizing Real Estate: Navigo's 3D Solution for Home Buyers

Navigo, a Pune-based startup, is changing the way home buyers experience real estate with its innovative 3D tool, increasing sales and reducing cancellations.

September 21, 2024
Read Article
Emaar India Launches Villa Project in Maharashtra’s Mandwa Jetty
Real Estate Maharashtra

Emaar India Launches Villa Project in Maharashtra’s Mandwa Jetty

Emaar India, a leading real estate developer, has made a significant move into the Mumbai market with the launch of a new villa project in Mandwa Jetty, Mumbai Metropolitan Region. The project promises to redefine luxury living in the area, offering premi

October 22, 2024
Read Article
Madhu Mantena's Production House Acquires Premium Apartments in Mumbai
Real Estate Mumbai

Madhu Mantena's Production House Acquires Premium Apartments in Mumbai

Bollywood film producer Madhu Mantena has made significant real estate investments in Mumbai, acquisitions that reflect the city's growing appeal among the entertainment industry's elite. In October, Bollywood star Akshay Kumar's sister, Alka Bhatia Hiran

December 20, 2024
Read Article