8MAY 2024TOP STORIESSIEMENS LIMITED FRAGMENTS ENERGY DIVISION INTO NEW ENTITYINDIA DOMINATING ASIA IN TERMS OF DATA CENTER CAPACITYSiemens Limited has announced that its board has approved a plan to separate its energy business into a new legal entity named Siemens Energy India Limited. This newly formed company will operate as a wholly-owned subsidiary of Siemens and will eventually be listed on the market, with its shareholding structure mirroring that of Siemens.The multinational conglomerate explains that the demerger will result in two strong and independent entities, each able to focus more effectively on their specific markets and customers. This strategic move is designed to enhance focus and maximize shareholder value for both businesses.Post-demerger, Siemens Limited will continue to focus on technology-driven areas such as industry, infrastructure, and mobility. On the other hand, Siemens Energy India will concentrate on becoming a leading energy technology company dedicated to supporting its customers in transitioning to a more sustainable global environment.Siemens Energy India will provide comprehensive solutions across the entire energy value chain. This includes power and heat generation, transmission, and storage, leveraging a broad portfolio that encompasses both conventional and renewable energy technologies. These technologies range from gas and steam turbines to hybrid power plants that utilize hydrogen, along with power generators and transformers.As per the arrangement scheme, Siemens shareholders will receive one share of Siemens Energy India for each Siemens share they hold. Following this allocation, the new entity will be listed on both the BSE Limited and the NSE Limited. India has achieved a significant milestone by overtaking major countries such as Australia, Hong Kong SAR, Japan, Singapore, and Korea to become the leader in data center capacity in the Asia-Pacific region (excluding China), with a capacity of 950 MW. According to CBRE, India is also projected to have the highest capacity addition, amounting to 850 MW, during the 2024-2026 period, surpassing other major APAC countries.The sector has seen considerable investments from global operators, real estate developers, and private equity funds, highlighting the growing importance and potential of India's data center market. Henry Chin, Global Head of Investor Thought Leadership and Head of Research at CBRE APAC noted that while 2023 was relatively slow for leasing due to a global economic slowdown, activity picked up significantly in the fourth quarter, with numerous deals in the pipeline.Following India, Japan has the second-highest data center capacity at 892 MW, with Australia (773 MW), Singapore (718 MW), Hong Kong (613 MW), and Korea (531 MW) trailing behind. In 2023, India added 255 MW of new supply, up from 200 MW in 2022, bringing the total capacity to approximately 1,030 MW by the end of the year. The total data center stock in India was 16 million square feet in 2023. Anshuman Magazine, Chairman & CEO of India, South-East Asia, Middle East & Africa at CBRE, emphasized that India's favorable market conditions are attracting multinational corporations (MNCs) looking to expand their digital services and relocate from other Asian markets facing supply constraints. There is sustained demand from BFSI firms, technology corporations, and cloud service providers, who are exploring alternative solutions such as colocation and hyperscale facilities.
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