‘Data centre capacity in India to double by FY 2025’

Our Bureau Hyderabad | Updated on May 26, 2020

Mumbai currently leads with 41% data centre capacity

The country’s data centre capacity is set to grow 2x by 2025 with some major cities like Hyderabad, Mumbai, Chennai and Bangalore expected to witness supply addition of up to 40 per cent this year.

Consulancy firm CBRE in a report on Data Centre (DC) market while highlighting top trends that will shape the segment in 2020, said that Mumbai currently leads with 41 per cent data centre capacity, followed by Bangalore (17 per cent) and Delhi (16 per cent).

With growing digital consumption patterns such as online gaming, E-education, streaming, e-commerce, total internet hits etc, DC operators are expected to see a huge demand for data centre space, thereby scaling up their DC facilities quickly to serve Hyperscalers and enterprise clients.

Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE, said: “In the era of the fourth industrial revolution, we expect regulatory support to augment the data centre demand in India. Policy impetus such as the National E-commerce Policy, Personal Data Protection Bill, proposed policy on Data Center Parks and digital initiatives by the government will accelerate demand.”

Next wave of growth

“The pandemic will further propel the next wave of growth in the sector and most importantly, the proposal to give DCs the coveted ‘Infrastructure status’ will place them high on global investor radar,” he said.

The consultancy expects global players to continue to take interest in investing in the country, with a focus on backing leading operators or funding prominent developers to foray into the DC segment in 2020.

Considering the Covid-19 pandemic in India, corporates would be inclined towards investing in the cloud and hybrid IT infrastructure, as operations would move online and employees may need to continue to work from home.

With regulatory requirements for data storage expected to be implemented in the coming quarters, large-scale initiatives such as ‘Make in India,’ ‘Digital India’ and Smart City Mission in particular would further augment DC demand.

Published on May 26, 2020

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