A report by JM Financial suggests that India’s infrastructure makes it a preferred place for data center businesses due to improving cross-border connectivity, lower costs, and strategic location between the Middle East and Southeast Asia. The demand for data centers in India is rising, with structural and cyclical factors driving the trend. Despite India generating 20% of global data, it has only 5.5% of global data center capacity, leading to a demand-supply mismatch and a cyclical boom in capacity expansion. As of 2024, India’s co-location data center capacity stands at 1.35 GW, but the country needs a total capacity of 5 GW by 2030 to reach 50% of China’s data center density. This will require significant capital spending, potentially leading to more companies listing on the stock market to gain access to capital.