Companies relook at where to put their operations globally, says Binswanger
Buoyed by the growing demand, over 45 data centres spanning ~13 million sq ft and 1,015 MW of IT capacity are planned to come up in India by 2025-end, reveals a report by ANAROCK-Binswanger.
In terms of IT capacity (nearly 1,015 MW), over 69% of this planned new supply will come up in Mumbai and Chennai, with 51% in Mumbai alone, according to the report ‘Under the Lens: India’s Data Centre Explosion’.
Currently, there are 138 DCs across India spanning ~11 million sq ft and having 737 MW of IT capacity (building ready). At least 57% of this current IT capacity is in Mumbai and Chennai collectively.
With the addition of this new planned supply, 2025-end will see India hosting 183 DCs with ~24 million sq ft and at least 1,752 MW of total IT capacity.
“The current size of the India data centre industry is approx. US$5.6 billion and is bound to grow,” said Devi Shankar, President – Industrial & Logistics and Data Centres, ANAROCK Capital.
“Technology adoption and digitization across the sectors were fast-tracked globally while India also leap-frogged at least a decade in the last couple of years.
“The country’s total estimated data centre demand is expected to be 2,100 MW as of FY 2025, with a mix between hyperscalers and enterprises – 35:65 (excluding self-owned hyperscaler capacity).”
Meanwhile, there is additional potential of nearly 2,688 MW of future unplanned supply in India. Land for this supply has been locked in by DC operators, but the projects will likely be planned based on actual demand. This is the outcome of earlier planned phases.
While this represents land banking for providing scalability for future expansion to customers, this capacity must be judiciously released into the market to ensure price stability.
Around 78% of this unplanned IT capacity is to be concentrated in Mumbai and Hyderabad.
Jeff Binswanger, Managing Partner, Binswanger, elaborated on 30 Aug 2022, “Companies are really starting to relook where they are putting their operations globally, where they would like to relocate and where do they want to manufacture, distribute and set up their database and technology facilities.
“Data centres are currently a fulcrum for a lot of the decision-making, especially in Asia Pacific and in India.” fiinews.com
