Growth will push for the development of additional real estate space of 7.8 mn sq ft over the existing 8.2 mn sq ft; Mumbai and Chennai to account for 76% share of these new capacity additions.
India's data centre industry is set to register threefold growth in revenue to 3.2 bn dollars by 2024 and is likely to propel the development of additional real estate space of 7.8 mn sq for setting up data centre facilities, according to a new report.
The country's e-commerce sector, use of smartphones and social media, government’s focus on digital economy and rise in technology-driven start-ups have led to rapid growth in data usage and storage, increasing data centre space. In addition to this, the entry of several global cloud service providers is adding to space take-up.
With the advent of internet and mobile phones, India’s data centre industry continues to provide data storage, computing and other value added services. To meet the rising demand arising from data localisation and rising data usage, India’s data centre industry capacity is projected to increase by additional 431 MW in the next five years from the current levels of 350 MW (design IT power load) in 2018-19, according to the report titled 'India's Data Centre Industry - Poised at the Tipping Point' by JLL.
This expansion is expected to provide a greenfield investment opportunity of $4.1 bn in setting up data centres.
Mumbai and Chennai will account for 76 percent share of these new capacity additions; other key metros such as Delhi-NCR, Pune and Hyderabad to follow, the report said."India's supremacy in the field of information technology is unparalleled. We’re now witnessing an increasing interest for data centre facilities from enterprises and investors, both domestic and international. Businesses around the world continue to work on data consolidation, storage and cloud adoption. As a result, over the past couple of years, we have seen a spike in demand for data centres. While a significant share of this demand and opportunity is coming from investors, Greenfield acquisitions for co-location and hyper-scale players, and rack migration for corporates offer tremendous business potential," said Ramesh Nair, CEO & Country Head - India, JLL.
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