Demand for data centres in India to double by 2025 – report
CBRE shared findings that explored the data centre market, highlighting trends that will shape the segment in 2020.
The findings highlighted that markets across Mumbai, Chennai, Bangalore, Kolkata, Hyderabad, Pune and NCR are expected to witness supply addition of up to 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., data centre operators are expected to see a huge demand for data centre space, thereby scaling up their facilities to serve hyperscalers and enterprise clients.
“In the era of the fourth industrial revolution, we expect regulatory support to augment the Data Centre demand in India,” said Anshuman Magazine, Chairman & CEO – India, South East Asia, Middle East & Africa, CBRE.
“Policy impetus such as the National E-commerce Policy, Personal Data Protection Bill, proposed policy on Data Centre Parks and digital initiatives by the government will accelerate demand.
“The COVID-19 situation will further propel the next wave of growth in the sector and most importantly, the proposal to give DCs the coveted ‘Infrastructure status’ will place them high on global investor radar.”
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CBRE expects that 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 data centre segment in 2020.
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.
CBRE anticipates that cities such as Kolkata, Pune, Gurgaon, Kochi and Jaipur, particularly, are likely to be amongst the first ones to witness edge data centres in the next few years on the back of their ability to service specific geographic zones.
Ram Chandnani, Managing Director, Advisory & Transaction Services, CBRE South Asia Pvt. Ltd. said, “Demand for outsourced Data Centre solutions has increased in India and we understand that occupiers would require flexible, scalable data centre solutions that are both operationally and financially optimal.
“By drawing on our extensive experience, we can incorporate best practices from industry peers across IT strategies and ensure our clients are optimising architecture and creating a robust and efficient infrastructure.
“Technology and automation would provide significant opportunities in terms of how data centre operations evolve as we move forward in the next 3-5 years.”
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