Hyderabad data center capacity to triple during next five and half years ending 2025: JLL

Hyderabad data center capacity is expected to grow from 32 MW in H1 2020 to 130 MW ending 2025. The city is likely to attract hyper scalers due to various incentives provided for data centers and the presence of global in-house centres, according to JLL’s H1 2020 (re)imagine Data Centers. “Mumbai is expected to see the highest capacity addition as it continues to be the preferred choice for large cloud players because of its infrastructure advantage. 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

According to JLL’s H1 2020 report, the impact of data protection laws, increased shift from captive to colocation (colo) data canters and implementation of new technologies like 5G, edge computing and the internet of things (IoT) will drive sustained investor demand for this asset class over the next five years. India’s data centre industry has provided an immense boost to the digital economy during H1 2020. India’s data center 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 center market will outperform over the next five years, supported by a combination of growing digital economy, increased investor interest and stable long-term returns. Growth in the sector will be further powered by colocation sites which, via, lower upfront costs, heightened data security, uninterrupted services and scalability will also, influence investors to reimagine the potential of India’s data canter space. 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% rise. There was a 12% rise in data consumption in Andhra Pradesh and Bihar, while there was a 7% 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% in H1 2020, taking India’s total colocation capacity to 375 MW. H1 2020 witnessed supply addition of 27 MW, which is 56% 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.

“Powered by the transition to work from home arrangements during the lockdown, the country’s data center industry became the backbone of the digital economy and ensured a level of business continuity and sustained large portions of the country’s education system. Given shifts in the economy, we will continue to see data consumption increase manifold for the foreseeable future,” said Rachit Mohan, India Head, Data Center Advisory, JLL. 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.

Hyderabad data center capacity to triple during next five and half years ending 2025: JLL Hyderabad data center capacity to triple during next five and half years ending 2025: JLL Reviewed by TechCO on 10/03/2020 Rating: 5

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