Data Centre Capacity to Grow 2x By Fy25
On the back of various policy initiatives, widening customer base and increasing corporate requirements for data storage, CBRE key findings into the Data Centre (DC) market highlighted that markets across Mumbai, Chennai, Bangalore, Kolkata, Hyderabad, Pune and NCR are expected to witness supply addition of upto 40% in 2020. Out of this, Mumbai currently leads with 41% data centre capacity, followed by Bangalore (17%) and Delhi (16%). With growing digital consumption patterns such as online gaming, online education, streaming, e-commerce, total internet hits etc., DC operators are expected to see a huge demand for data center space, thereby scaling up their DC facilities quickly to serve Hyperscalers & enterprise clients. These developments allow for enterprise CIOs and technology leaders to engage with CBRE for streamlining their businesses in new site selection and acquisitions for footprint expansion. Global players are likely 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. Further, against the backdrop of the COVID-19 situation 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. Occupiers’ demand for co-location space over captive DCs is further likely to boost due to categorization of third-party DCs as ‘Essential Services” ensuring uninterrupted and uneventful operations even during a pandemic situation like the world is facing today. With regulatory requirements for data storage expected to be implemented in the coming quarters, corporates would now seriously re-evaluate their DC portfolios in the country. Cities such as Kolkata, Pune, Gurgaon, Kochi and Jaipur, particularly, are likely to be amongst the first ones to witness edge DCs in the next few years on the back of their ability to service specific geographic zones. The passage of policies such as the National E-commerce Policy and Personal Data Protection Bill are likely to mandate Indian consumers’ data to reside within the country, thereby boosting the demand for data centers. Further, large-scale, nationwide initiatives such as ‘Make in India‘, ‘Digital India’ and Smart City Mission in particular would further augment DC demand.
Tags : ALLIED CBRE India COVID-19 Data Centre Global players Essential Services National E-commerce Policy Digital India