India's data centre segment in the real estate industry is expected to add 681 MW (megawatt) capacity by end of 2024, leading to a doubling of capacity to 1,318 MW, said real estate advisory firm JLL. The additional capacity in the segment will need 7.8 million square feet of real estate space.
The growing digitalisation backed by a strong government policy impetus has led to a surge of the number of data centres (DCs).
"Supply has been mostly concentrated in Mumbai due to submarine cable connectivity, power availability and a large user market. As the year 2022 comes to an end, the supply is expected to exceed 2021 levels by a healthy margin," JLL said in its year-ender report.
In 2022, the data centre industry is expected to close the year with robust demand growth with estimated absorption in the range of 150-170MW.
"Mumbai is expected to account for 57 per cent of the new supply followed by Chennai at 25 per cent. Increasing digitisation is expected to save costs and make organisations resilient in times of uncertainty which will be one of the key drivers of data centres' growth in India," said Rachit Mohan, Head, of Data Centre Advisory, India, JLL.
The impact of the 5G rollout, personal data protection legislation and investment incentives is expected to drive multi-year growth of Indian data centres.
"Public service cloud providers continue to see double-digit demand growth driven by the increasing use of digital services by BFSI (Banking, financial services and insurance), manufacturing, public sector, media, gaming, etc. In turn, this is expected to drive increasing demand for the data centre industry," he added.
( With inputs from ANI )
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor