New Delhi, Sept. 11 -- India is emerging as a competitive destination for data centre investments, with Mumbai ranking among the world's most cost-effective locations for data centre construction, giving the country an advantage over major Asian markets such as Singapore and Tokyo, according to a KPMG report.

The report said Mumbai ranks as the world's second most cost-effective location for data centre construction, with construction costs in Singapore and Tokyo nearly double those in Mumbai.

"India has a clear edge over other major commercial markets such as Singapore and Tokyo where the costs are nearly double that of Mumbai," the report said.

India's cost advantage comes at a time when demand for data centre capacity is rising rapi...