Additionally, investors and global data center players have increased their commitment during the last six months in the India market by announcing joint ventures to meet expected demand.
Driven by strong digitalisation, rising cloud adoption and ambitious growth plans of operators, data center industry’s capacity in India is expected to double and exceed 1 gigawatt (GW) by 2023, said a JLL India report.
The acceleration of digitalisation has forced enterprises to scale up their information technology (IT) infrastructure across the country. As a result of digital upgrades, a strong demand for colocation and cloud facilities, which offer scalability, security, and connectivity at lower costs, is being witnessed across India. GW and megawatt (MW) indicate the IT design power load.
Additionally, investors and global data center players have increased their commitment during the last six months in the India market by announcing joint ventures to meet expected demand.
“The demand momentum which picked up pace in 2020, continues to grow unabated. The Indian data center industry witnessed 46.4 MW absorption during H1 2021 – equivalent to 90% of supply addition during the period (H1 2021), indicating robust absorption growth. Demand has been expanding rapidly due to increasing digital usage emerging from distributed workforce, growing data security concerns and business disruptions,” said Rachit Mohan, Head, Data Center Advisory – India; Co-Head, Office Leasing Advisory – Mumbai, JLL.
According to him, banking and financial services are adopting hybrid options to meet digital growth. Home-grown video and gaming platforms in midst of robust user growth are also fuelling the data center industry demand. Furthermore, telecom players are formulating the roll out of 5G, which is expected to drive exponential growth in data consumption
Data center operators are adopting large land acquisition strategies to fulfil the long-term requirements of hyperscalers including large cloud players and occupiers with massive computing requirements. These operators would provide occupiers with flexibility in terms of availability zones, fiber pathways and power provisions required for large scale expansions in less time. Players are also adopting strategic alliances by investing in new submarine cables to meet the growing demand.
“Global investors and data center players have increased their commitment during the last six months, announcing joint ventures with operators to setup sites. Investment commitments to the tune of $3 billion highlight the growth potential, with the data center industry expected to double its capacity and cross the 1GW mark by 2023,” said Samantak Das, Chief Economist and Head of Research & REIS (India), JLL.
According to Das, Mumbai that currently accounts for 45% of the total capacity is expected to further add 267MW between now and 2023. Various states have also been providing incentives for the data center industry as they are looking to join the next leg of technological change.
The telecom industry has been gearing for rolling out the 5G services with three providers starting field trials. The trend of sustainability has been gaining pace as tie-ups for green energy are being inked.
https://cio.economictimes.indiatimes.com/news/data-center/indian-data-center-industrys-capacity-to-double-by-2023-report/85588819
