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Growing Demand for More Data Centers in India Requires Fresh Investments

  • Uncategorized
  • Aug 11, 2021

The landscape of the data center is continuing to evolve day by day, and with every new day, the data center is evolving. The industry is continuously growing and is expected to grow and reach 1007 MW by 2023 from its existing capacity of 447 MW. With the growing reliance on digital connectivity, the demand is rapidly growing. Many users and customers are using 5g services, and so the rate of consumption is also increasing day by day, and so it needs a lot of data center to store data and perform different types of the task at the same time. Datacenter are very necessary in the current times because there are many IoT linked devices which are based on cloud adoption, and so data centers are required. ' 'India's data center sector will be requiring a great investment of $3.7 billion over the coming years, which is required to fulfill the huge 6 million square ft greenfield development opportunity for the industry.

Mumbai and Chennai are projected to account for 73 percent of the sector's total capacity over the 2021-23 period, while other cities like Hyderabad and Delhi NCR are emerging as new hotspots prevailing infrastructure while new markets such as Hyderabad are gaining momentum in this area. "India's data center industry is expected to add 560 MW in 2021-23, resulting in 6 million square feet of real estate needs. Racks and servers, sustainable power, and use of indigenous resources, said Dr. Samantak Das, Chief Economist, and Research Director and REIS (India), JLL. Growing demand is leading operators to pursue ambitious expansion plans while some are taking the acquisition route to enter Indian markets. Various policies and reforms put in place by the government to make India a "global data hub" have the most to help achieve this goal, he added. The increasing use of e-commerce, educational technology, and digital transactions are putting pressure on the existing IT infrastructure of companies.

Total data usage increased 36 percent in 2020 due to increased smartphone and landline usage, according to the Nokia Mobile Broadband India Traffic Index 2021. Due to budget constraints, companies have improved their IT infrastructure by introducing hybrid models. Deployment, IoT-connected devices, and artificial intelligence will also lead to further growth in demand. India's colocation data center industry saw unprecedented growth of 102 MW in 2020, with a utilization rate higher than most key markets in Europe and America. Increasing Cloud Adoption With increasing digitization and advancing legislation, we expect an increasing demand for colocation space across the country, said Rachit Mohan, Head of Data Center Advisory (India), JLL.