Core Insights - The global digital economy is rapidly expanding, driven by artificial intelligence, cloud computing, and data-intensive services, leading to increased demand for data centres [1] - Malaysia is emerging as a leading data centre hub in Asia, expected to surpass India in capacity by 2029, despite India's advantages [1][2] Malaysia's Rise - Malaysia attracted approximately $43 billion in data-centre investments from 2021 to 2024, with an annual growth rate of over 22% in installed capacity [2] - Johor has transformed from a palm-oil plantation area to a global AI-infrastructure hotspot, benefiting from demand spillover from Singapore [2][4] - The country has streamlined power planning and approvals, reducing the time for power approvals from 3-4 years to about 12 months [4] Policy and Regulatory Framework - Malaysia's policy coordination includes predictable frameworks for incentives, permitting, and infrastructure, with a Data Centre Task Force established in 2025 to harmonize approvals [5][6] - A Sustainable Data Centre Framework is being developed to enforce energy and water efficiency standards, with a target of 31% renewable energy by 2025 [6][7] India's Position and Challenges - India has the second-largest data-centre capacity in Asia, projected to reach 4,500 MW by 2030, driven by strong demand fundamentals [8] - Despite favorable policy intent, execution remains a challenge, with long approval timelines for land and utility connections [9][11] - Power supply is a significant bottleneck, with data centres projected to consume 3% of India's power by 2030, facing hurdles in securing long-term green power [10] Competitive Landscape - India's data-centre growth is influenced by state-level initiatives, with Maharashtra and Tamil Nadu facing saturation, while Telangana and Andhra Pradesh offer competitive advantages [12] - Malaysia's success highlights the importance of prioritization, sequencing, and stability in planning and execution [13] Recommendations for India - India should implement tiered sustainability standards and ensure power certainty through early-stage grid access and renewable energy commitments [14][15] - Unified planning and site-zoning rules are necessary to streamline approvals and minimize conflicts [15] - Establishing a multi-stakeholder task force is critical for coordinating planning, grid expansion, and water management [15] Conclusion - India's opportunity in the data centre sector is significant but requires improved execution to compete effectively against Malaysia and other emerging markets [16]

Summary of Key Points from the Conference Call Industry Overview - The focus is on India's economic landscape, particularly the role of its 28 states and 8 Union Territories in driving growth and stability. [1][2][11] Core Insights and Arguments 1. **Importance of State Policies**: States must implement growth-enhancing policies to secure India's economic potential. Without understanding state dynamics, investor confidence in India's macroeconomic story is compromised. [1][2][3] 2. **Global Economic Contribution**: India is projected to contribute 20% of global growth in the next decade, with its economy expected to reach US$10.6 trillion by 2035. Key states like Maharashtra, Tamil Nadu, and Gujarat are anticipated to have economies nearing US$1 trillion each. [2][4] 3. **Competitive Federalism**: The success of India's federal structure, where states compete for investments and improve business conditions, is crucial for economic growth and stock market performance. [3][12][14] 4. **State-Level Economic Disparities**: Economic disparities among states can lead to social distress and migration pressures, highlighting the need for balanced growth across regions. [16][41] 5. **Assessment Framework**: A proprietary framework assesses states based on economic progress, social well-being, productivity, and fiscal management, identifying Maharashtra, Gujarat, and Telangana as top performers. [5][18][24] Additional Important Insights 1. **Challenges in Growth**: States face various challenges, including disparities in fiscal capacity, governance, and infrastructure, which can hinder overall progress. [6][19][70] 2. **Investment and Infrastructure Development**: Significant infrastructure growth has been noted, with central government initiatives leading to improvements in highways, airports, and metro networks. However, regional disparities persist. [70][71] 3. **Socioeconomic Progress**: States have made strides in social indicators, but historical laggards like Bihar and Jharkhand still have significant ground to cover. [73][75] 4. **Policy Framework Variability**: States exhibit varied policy priorities, with some focusing on economic growth while others prioritize social welfare. This variability affects overall development outcomes. [77][78] 5. **Fiscal Dynamics**: States' fiscal health varies widely, with some maintaining fiscal prudence while others face high debt burdens, impacting their ability to fund development projects. [66][68] Conclusion - Understanding the diverse economic and policy landscape of India's states is essential for investors and policymakers. The interplay of competitive federalism, state-level governance, and infrastructure development will shape India's economic trajectory in the coming years. [12][41][43]