Hyderabad data centre capacity to triple, says JLL

Our Bureau Hyderabad | Updated on October 01, 2020 Published on October 01, 2020

To add 98 MW over 32 MW capacity in H1 2020

Hyderabad’s data centre capacity is expected to grow from 32 MW in H1 2020 to 130 MW by 2025, according to JLL.

In JLL’s H1 2020 ‘(Re)imagine Data Centers: Running India’s Digital Economy’ report, the consultancy firm states that the city is likely to attract hyper-scalers due to various incentives provided for data centres and the presence of global in-house centres.

During June-December 2020, India is expected to see 57 MW of new capacity, twice that of the 27-MW new supply during H1 2020.

India’s data centre capacity is expected to grow from 375 MW in H1 2020 to 1,078 MW by 2025, presenting a $4.9-billion investment opportunity.

“India’s data centre market will outperform over the next five years, supported by a combination of growing digital economy, increased investor interest and stable long-term returns. The 703 MW expected capacity additions translating to 9.3 million sq ft of space, will open up greenfield investments for real estate developers and investors to fuel the future development of the sector,” said Sandip Patnaik, Managing Director, Hyderabad, JLL India.

Daily data consumption rose from an average of 270 petabytes (PB) during the pre-lockdown period to an average of 308 PB post lockdown period, registering a 14 per cent rise.

There was a 12 per cent rise in data consumption in Andhra Pradesh and Bihar, while there was a 7 per cent increase in data consumption in Maharashtra, which is the highest data consumer. In terms of total capacity addition, there has been an increase of 8 per cent in H1 2020, taking India’s total colocation capacity to 375 MW. H1 2020 witnessed supply addition of 27 MW, which is 56 per cent of the total addition seen in 2019 (48 MW). Mumbai continued its lead with addition of 19 MW, followed by Bengaluru at 5 MW and Delhi NCR at 3 MW.

The dependence of several industries on digital infrastructure has partially helped mitigate the impact of the lockdown as IT/ITeS, banking and financial services, e-commerce, capital markets, social media and education remained operational.

“Mumbai is expected to see the highest capacity addition and Chennai is also proving an attractive destination due to its advantages of submarine cable landing stations and low development costs. Hyderabad is likely to see the third largest capacity addition of 98 MW leading to the demand for 0.7 mn sq ft additional real estate space over the next five and half years ending 2025” says Dr Samantak Das, Chief Economist and Head of Research & REIS, JLL India

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Published on October 01, 2020
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