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Increasing demand for digital connectivity spurs growth of data centres

Our Bureau Chennai | Updated on June 02, 2021

India’s data centre industry is expected to add 560 MW during 2021-23 leading to a real estate requirement of 6 million sq ft

Chennai's data centre capacity is expected to grow by 2.5 times to 133 MW by 2023 owing to demand from cloud players, as per a JLL report titled ‘2020 India Data Center Market Update’.

“Chennai is expected to remain as a leading data centre destination due to its strategic location, four cable landings and reliable power supply. The city witnessed 16 MW absorption in 2020 primarily driven by demand from cloud players. The key data centre hubs of Ambattur and Siruseri are expected to add 79 MW during 2021-23. Cloud players prefer high quality, scalable data centre facilities offered by the operators. The presence of IT/ITeS, BFSI and manufacturing sector is also expected to drive demand” said Siva Krishnan, Managing Director - Chennai & Coimbatore, JLL India, in a press release.

Also read: India’s wireless teledensity, Internet subscribers grow manifold in last 6 years: TRAI

As the data centre landscape continues to evolve, the industry is expected to grow exponentially to reach 1,007 MW by 2023 from 447 MW. With the growing reliance on digital connectivity, demand is likely to ramp up further due to the imminent roll out of 5G, IoT-linked devices, data localisation and cloud adoption.

Mumbai, Chennai top charts

Mumbai and Chennai are expected to drive 73 per cent of the sector’s total capacity addition during 2021-23, while other cities like Hyderabad and Delhi NCR are emerging as new hotspots. Robust pre-commitments by global cloud players in the established markets of Mumbai and Pune continue.

“India’s data centre industry is expected to add 560 MW during 2021-23 leading to a real estate requirement of 6 million sq ft. The supply addition will be complemented by densification of racks and servers, sustainable energy sourcing and use of indigenous resources. Various policies and reforms brought in by the Government to turn India into a ‘Global Data Hub’ have provided necessary measures to achieve this goal,” said Samantak Das, Chief Economist and Head of Research & REIS (India), JLL.

Published on June 02, 2021

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