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Top 8 cities to add nearly 10 million square feet of data centre space in 2-3 years

Mumbai, Chennai, Bengaluru and Hyderabad see maximum demand; data centres to deliver annual rental yield of 10-14 percent  

Representative image
Representative image

The top eight cities across the country can add around 10 million square foot of data centre space in the next two to three years and can deliver an annual rental yield of 10-14 percent. The key cities leading the demand for data centres include Mumbai, Chennai, Bengaluru and Hyderabad, among others, an analysis by Anarock has said.

“Currently, data centres in the top 8 cities occupy 7.5 mn sq. ft. space and an additional 10 mn sq. ft. space is likely to be added over the next 2-3 years. Immediately after India went into a lockdown mode due to COVID-19, there was a 25-35% increase in data centre capacity usage as companies began to overhaul their digital infrastructure to deal with the new work environment,” said Shobhit Agarwal, MD & CEO – ANAROCK Capital.

“The pandemic has been a massive catalyst for digital adoption across the spectrum,” says Shobhit Agarwal. “Work-from-home (WFH) compulsions, online education, video-based medical consultations, a huge increase in ecommerce and business-related video conferencing and webinars are increasing the demand for data centres. Furthermore, the government’s move to make data localization mandatory ensures a promising future for data centres in the country.”

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As per industry estimates, the data centre outsourcing market in India is worth more than $2 billion and is projected to grow at 25 percent CAGR to reach $5 billion by FY2023-24. In fact, data centres are emerging as an alternative real estate asset class with huge potential, and leading real estate developers are zeroing in on this opportunity to reap superior returns from early investments.

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There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

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Leading players like Adani Group, Hiranandani Group and Salarpuria Sattva have already rolled out significant investment plans for building data centres in India over the next decade and more.
First Published on Aug 4, 2020 05:40 pm
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