New Delhi, Sept. 3 -- India's data-centre industry is gaining ground against rival markets on cost, with cheaper power, land and construction helping operators attract hyperscalers even as governments offer additional incentives.

The cost of setting up a data centre in India is 30-50% lower than in developed markets across Asia, Europe and the US, according to a Nomura report dated 2 June. Building a facility costs $6-7 million per MW in India, versus $10-14 million per MW in the US and Europe, excluding land and computing equipment.

Cheaper land and electricity account for about a third of the total setup cost, Nomura said. Lower labour and construction costs, cheaper materials and a growing domestic supply chain further widen the gap....