CLOUD & DATA CENTER

Indian Data Center Industry Capacity to Double by 2023: JLL

Industry capacity expected to double from 499MW in H1 2021 to 1008 MW by 2023

Mumbai, 24 August 2021 India’s data center industry is expected to double capacity by 2023, says JLL. Capacity will exceed 1GW by 2023, driven by strong digitalisation, rising cloud adoption and ambitious growth plans of data center operators, according to JLLs ‘H1 2021 India Data Center Market Update’ released today. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020. It specializes in real estate and investment management, with operations in over 80 countries and a global workforce of more than 92,000 as of June 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.

Nationwide, the acceleration of digitalisation has forced enterprises to scale up their IT infrastructure. As a result of digital upgrades, a strong demand for colocation/cloud facilities, which offer scalability, security, and connectivity at lower costs, has been witnessed across India. Additionally,
investors and global data center players have increased their commitment during the last six months in the India market by announcing joint ventures to meet expected demand.

data center industry“The demand momentum which picked up pace in 2020, continues to grow unabated. The Indian data center industry witnessed 46.4 MW absorption during H1 2021 equivalent to 90% of supply addition during the period (H1 2021), indicating robust absorption growth. Demand has been expanding rapidly due to increasing digital usage emerging from distributed workforce, growing data security concerns and business disruptions. Banking and financial services are adopting hybrid options to meet digital growth. Homegrown video and gaming platforms in midst of robust user growth are also fuelling the data center industry demand. Furthermore, telecom players are formulating the roll out of 5G which is expected to drive exponential growth in data consumption,said Rachit Mohan, Head, Data Center Advisory India; CoHead, Office Leasing Advisory Mumbai, JLL.


Global investors and data center players have increased their commitment during the last six months, announcing joint ventures with operators to set up sites. Investment commitments to the tune of $3 billion highlight the growth potential, with the data center industry expected to double its capacity and cross the 1GW* mark by 2023. Mumbai which currently accounts for 45% of the total capacity is expected to further add 267MW between now and 2023. Various states have also been providing incentives for data center industry as they want to join the next leg of technological change,” said
Dr Samantak Das, Chief Economist and Head of Research & REIS (India), JLL.

Data center operators are adopting large land acquisition strategies to fulfill the longterm requirements of hyperscalers (large cloud players and occupiers with massive computing requirements). These operators would provide occupiers with flexibility in terms of availability zones, fiber pathways and power provisions required for large scale expansions in less time. Players are also adopting strategic alliances by investing in new submarine cables to meet the growing demand.


The telecom industry has been gearing for rolling out the 5G services with three providers starting field trials. The trend of sustainability has been gaining pace as tieups for green energy are being inked.

 

Brian Pereira

Brian Pereira is an Indian journalist and editor based in Mumbai. He is Editor-in-Chief of Digital Creed, which he founded in 2015. A technology buff, former computer instructor, and software developer, Brian has 27 years of journalism experience (since 1994). He is sound and confident about his knowledge of business technology concepts. And he is a believer in continual education/learning. Brian is the former Editor of CHIP and InformationWeek magazines (India). He has written hundreds of technology articles for India's leading newspaper groups such as The Times of India and Indian Express Newspapers (among others). And he has conducted more than 300 industry interviews during his journalism career. Brian also writes on Aviation, cybersecurity, startups, and topics directed at small and medium businesses. He achieved certifications from the EC-Council (Certified Secure Computer User) and from IBM (Basics of Cloud Computing). Apart from those, he has successfully completed many courses on Content Marketing and Business Writing. Follow Brian on Twitter (@creed_digital) and LinkedIn.

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