Real estate demand for data centres likely to rise
27 May 2021
3 Min Read
CW Team
A report by the property consultancy Savills India stated that the real estate demand for data centres is set to grow by 15-18 million sq ft in the following four to five years over major Indian cities.
The report Poised for Growth: Data Centres in India said that the data centre demand is anticipated to reach above 2,500 MW between 2021 and 2025 with the approval of 5G, artificial intelligence (AI), Internet of Things (IoT), increasing usage of cloud services and in smart cities.
Data centres are one of the slightest hit real estate asset groups by the coronavirus outbreak, including India. The Indian data centre market is expected to observe higher growth than the global average, the report said.
Niraj Karale, Director and Head, Data Centre Services, said that India鈥檚 data localisation laws, digital transactions, social media, increasing adoption of cloud technology, and growing use of e-commerce, will lead to increased demand for data
thereby, accelerating the requirement for data centre and cloud services in the nation.
Presently, data centres in India own over 7.5 million sq ft of area, using over 650 MW of power. Above 8 million sq ft and 870 MW capacity is under development and will go online between 2021 and 2025. With the advanced growth of over 10 million sq ft, for 1200 MW, India is required to produce 3000 MW data-centre potential in near future.
The report stated that India is well-positioned to work as a regional data centre hub in Asia-Pacific and is likely to bring notable investment considering India鈥檚 rich network connectivity, availability of trained labour, low climate risk, cost-benefit, and strong data protection regulations.
However, The Indian market is at an evolving stage compared to other developing countries such as the United Kingdom, Japan, Germany and the US. As of February 2021, India had 123 data centres compared to 451 in the UK, 199 in Japan, 442 in Germany and 2,653 in the US.
Karale said that the government鈥檚 stated data centre policy is expected to increase investment in the area, advance the digital economy and increase the country鈥檚 needed infrastructure to provide for the increasing digital consumption.
Presently, the data-centre industry is resilient in cities such as Chennai, Bengaluru, New Delhi, Mumbai, and Hyderabad. Pune and Kolkata are some of the forthcoming cities with demand over these locations boosting due to enhanced network connectivity, digital transformation, initiatives by the local governments and proximity to consumers.
India is increasingly witnessing a huge opportunity in edge data centres, states the real estate adviser. Savills expects tier-II cities such as Lucknow, Ahmedabad, Coimbatore, Bhubaneshwar, Jaipur, Kochi, and Nagpur to view investments in edge data centres. These are smaller than the traditional data centres, established closer to the end-users and are on the edge of the network.
A report by the property consultancy Savills India stated that the real estate demand for data centres is set to grow by 15-18 million sq ft in the following four to five years over major Indian cities.
The report Poised for Growth: Data Centres in India said that the data centre demand is anticipated to reach above 2,500 MW between 2021 and 2025 with the approval of 5G, artificial intelligence (AI), Internet of Things (IoT), increasing usage of cloud services and in smart cities.
Data centres are one of the slightest hit real estate asset groups by the coronavirus outbreak, including India. The Indian data centre market is expected to observe higher growth than the global average, the report said.
Niraj Karale, Director and Head, Data Centre Services, said that India鈥檚 data localisation laws, digital transactions, social media, increasing adoption of cloud technology, and growing use of e-commerce, will lead to increased demand for data
thereby, accelerating the requirement for data centre and cloud services in the nation.
Presently, data centres in India own over 7.5 million sq ft of area, using over 650 MW of power. Above 8 million sq ft and 870 MW capacity is under development and will go online between 2021 and 2025. With the advanced growth of over 10 million sq ft, for 1200 MW, India is required to produce 3000 MW data-centre potential in near future.
The report stated that India is well-positioned to work as a regional data centre hub in Asia-Pacific and is likely to bring notable investment considering India鈥檚 rich network connectivity, availability of trained labour, low climate risk, cost-benefit, and strong data protection regulations.
However, The Indian market is at an evolving stage compared to other developing countries such as the United Kingdom, Japan, Germany and the US. As of February 2021, India had 123 data centres compared to 451 in the UK, 199 in Japan, 442 in Germany and 2,653 in the US.
Karale said that the government鈥檚 stated data centre policy is expected to increase investment in the area, advance the digital economy and increase the country鈥檚 needed infrastructure to provide for the increasing digital consumption.
Presently, the data-centre industry is resilient in cities such as Chennai, Bengaluru, New Delhi, Mumbai, and Hyderabad. Pune and Kolkata are some of the forthcoming cities with demand over these locations boosting due to enhanced network connectivity, digital transformation, initiatives by the local governments and proximity to consumers.
India is increasingly witnessing a huge opportunity in edge data centres, states the real estate adviser. Savills expects tier-II cities such as Lucknow, Ahmedabad, Coimbatore, Bhubaneshwar, Jaipur, Kochi, and Nagpur to view investments in edge data centres. These are smaller than the traditional data centres, established closer to the end-users and are on the edge of the network.
Image Source
Next Story
RentenPe and Mygate Partner to Transform Rent Payments in India
Through a strategic partnership, RentenPe and Mygate aim to streamline rent payments and promote financial inclusion by enabling rent-based credit scores for Indian renters. RentenPe, India鈥檚 first Rent Credit Score鈩� platform and a pioneer in rental fintech innovation, has entered a significant alliance with Mygate, the leading community management app in the country. This partnership will transform rent transactions for millions of Indian households by embedding RentenPe鈥檚 payment and rent credit scoring technology directly within the Mygate app. With this integration, all ren..
Next Story
Supreme Unveils New Brand Identity to Elevate Lifestyle
Supreme, a respected name in Indian real estate with a four-decade legacy, has announced a complete rebranding. The move includes the launch of a new logo and a revamped website, both reflecting the group鈥檚 refreshed vision to 鈥楨levate Lifestyle鈥�. This brand transformation represents more than a visual refresh鈥攊t marks a strategic shift in the company鈥檚 mission, visual identity and market positioning. The update will be visible across all of Supreme鈥檚 digital, social and offline communication platforms. At the core of the initiative is a renewed focus on purposeful design..
Next Story
Capri Loans Launches #TarrakiKeHaath Campaign Honouring India鈥檚 Everyday Heroes
Capri Global Capital Ltd (Capri Loans), a leading non-banking financial company, has unveiled its latest brand campaign, #TarrakiKeHaath, a powerful tribute to the everyday hands that build India 鈥� from kirana store owners and taxi drivers to dhaba workers, tailors, and carpenters. Narrated by Capri Loans鈥� long-standing brand ambassador and acclaimed actor Pankaj Tripathi, the campaign celebrates the dignity, resilience, and aspirations of self-employed individuals and small business owners who form the backbone of Bharat鈥檚 economy. Conceptualized by Rediffusion Brand Solutions, the..
