Sify Infinit Spaces has signed two lease agreements for nine floors of data centre space in Hyderabad spread over nearly 2.5 lakh sq ft — at an average rent of Rs 40 per — for five and 10 years, respectively, documents accessed by Propstack showed.
Sify Infinit has taken on lease 1.52 lakh sq ft of space for 60 months on the third, fourth, fifth, six, and seventh floors at a rent of Rs 42.44 per sq ft. The deposit paid for this is Rs 1.93 crore, the agreement showed.
The company has also leased the ground, mezzanine, first, and second floors spread across a chargeable area of 96,483 sq ft at a rent of Rs 40 per sq ft, the second agreement showed. A deposit of Rs 1.15 crore has been paid for this. Both agreements come with a rent escalation of 3 percent every year.
The building is owned by Sify Technologies and is located in the financial district of Nanakaramguda in Hyderabad.
An email has been sent to Rajeshwara Rao Venkata Chinjaluri, founder and Director of Sify Infinite Spaces.
“With the venture capital environment turning cautious, there is a significant decrease in growth capital. The commercial real estate industry is beginning to experience the effects of this change with reduced space requirements, shorter lease tenures, and a preference for co-working spaces. That said, data centres remain one of the strongest performing sectors and are expected to contribute to demand over the next few years,” said Raja Seetharaman, co-founder of Propstack.
Amazon, Google, Microsoft, and several other companies have been actively growing their captive data centre business in India. Sify is a leading data centre service provider with multiple centres across the country. They’ve already announced plans to expand their capacity, and this transaction indicates their intent to scale quickly, he said.
The Indian data centre (DC) market is growing at a compounded annual growth rate (CAGR) of around 40 percent, and is expected to attract investments of about $5 billion by 2025. This will drive the next wave of real estate investments, with a target capacity of 1,700 MW to be built by 2025, according to a report by Avendus Capital.
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