Over 45 data centres (DCs) spanning around 13 million sq ft and 1,015 MW of IT capacity are expected to come up in India by 2025-end, half of which will be in Mumbai alone, a report has said.
In terms of IT capacity (nearly 1,015 MW), over 69 percent of this planned new supply will come up in Mumbai and Chennai, with 51 percent in Mumbai alone. Currently, there are 138 DCs across India spanning around 11 mn sq ft and having 737 MW of IT capacity (building ready). At least 57 percent of this current IT capacity is in Mumbai and Chennai collectively.
With the addition of this new planned supply, 2025-end will India hosting 183 DCs with around 24 mn sq ft and at least 1,752 MW of total IT capacity, according to the ANAROCK-Binswanger report ‘Under the Lens: India’s Data Centre Explosion.’
Meanwhile, there is additional potential for nearly 2,688 MW of future unplanned supply in India. Land for this supply has been locked in by DC operators, but the projects will likely be planned based on actual demand and/or outcome of earlier planned phases.
While this represents land banking for providing scalability for future expansion to customers, this capacity must be judiciously released into the market to ensure price stability. Around 78 percent of this unplanned IT capacity is to be concentrated in Mumbai and Hyderabad, it said.
“The current size of the India data centre industry is approximately $5.6 billion and is bound to grow. The unprecedented crisis created by the COVID-19 outbreak has propelled the data centre business forward, providing an unexpected tailwind. Technology adoption and digitization across the sectors were fast-tracked globally and India also leap-frogged at least a decade in the last couple of years. The country’s total estimated data centre demand is expected to be 2,100 MW as of FY 2025, with a mix between hyperscalers and enterprises – 35:65 (excluding self-owned hyperscaler capacity),” said Devi Shankar, President - Industrial & Logistics and Data Centres, ANAROCK Capital.
“Companies are really starting to relook where they are putting their operations globally, where they would like to relocate and where do they want to manufacture, distribute and set up their database and technology facilities. Data centres are currently a fulcrum for a lot of the decision-making, especially in Asia Pacific and India,” said Jeff Binwanger, Managing Partner, Binswanger.
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