Analysing under-construction projects and capital invested or committed, an ANAROCK-Mace report titled ‘Navigating the India Data Centre Lifecycle – Trends & Perspectives’ reveals that India will see at least 28 large hyperscale data centres constructed over the next three years.
These will span over 16+ mn sq. ft. with at least 1,400+ MW of IT power capacity, equalling nearly 0.6 mn sq. ft. and 50 MW per facility on an average per hyperscale data centre.
The Indian data centre industry has attracted close to USD 977 mn in PE and strategic investments since 2008, of which nearly 40% or approx. USD 396 mn were infused between Jan-Sept 2020 period alone.
Anuj Puri, Chairman – ANAROCK Group says, “While India has been seeing a massive digital thrust since 2014, the current government’s data localization policy has paved the way for hyperscale data centres to handle the increasing data consumption.Hyperscale facilities have clear advantages over smaller colocation centres as they can cater to the huge domestic data warehousing demand creating operating efficiencies and thus, pass on cost benefits to their customers. Smaller colocation facilities will need to reassess their competitive position and may need to repurpose to ensure survival.”
Indians’ data consumption increased from 0.3 GB/user/month in 2014 to 10 GB/user/month in 2018; per capita consumption to hit 25GB/month by 2025 - total data traffic in the country likely to touch 21 EB (exabytes) per month.
The report finds that India currently has ~126 third-party data centres (colocation or hyperscale) spanning 7.5+ mn sft, and a cumulative IT Power Capacity of 590+ MW. While 53 players own /operate these 126 third-party data centres, the capacity is highly concentrated among the top 12 players who operate ~95% of the total IT Power capacity in the country.
The report also tracks investments into digital infrastructure for data storage in India from exchange and MCA filings of the top 12 data centre operators, and finds that the last decade saw this industry’s net fixed assets increase 25% p.a. - from USD 115 mn in 2010 to USD 1.1 bn in 2019.
Upcoming supply is expected to be concentrated amongst Mumbai and Chennai, followed by NCR and Hyderabad also getting a fair share of interest. Mumbai and Chennai together will witness ~60% of total future capacity, with NCR and Hyderabad contributing another 33%.
Anuj Puri, Chairman of ANAROCK Group is a highly respected industry authority and thought leader with 30 years' experience in leveraging Indian and global real estate opportunities. His company ANAROCK has a staff complement of over 1800 qualified and experienced professional, with offices in all major markets in the country, dedicated services in Dubai and a global footprint with over 80,000 preferred channel partners.