$10 billion investment has been made in data centers in India, says report

2 Dec 2022 , 08:04 AM

According to real estate advisor Colliers India, investments in data centres have totalled $10 billion (about Rs81,247 crore) since 2020 as demand for such facilities has increased due to a rapid increase in data consumption.

The consultancy predicted that India’s data centre stock would likely double to roughly 20 million square feet by 2025 from its current capacity of 10.3 million square feet in its paper titled “Data Center: Scaling up in Green age.”

Currently, India’s top seven cities – Mumbai, Delhi-NCR, Bengaluru, Chennai, Hyderabad, Pune, and Kolkata – collectively have about 770 MW of data centre capacity.

“The tremendous boom in data consumption caused by digitalisation, increased cloud use, etc. over the past two years has been driving India’s data centre growth. Data centre operators are also encouraged by the advantages offered by several states, such as subsidised land, stamp tax exemption, etc “The paper said.

Mumbai has the highest percentage of data centres (49%) thanks to the availability of a landing station and submarine cable access.

Bengaluru is second in terms of data centre capacity, with Delhi-NCR holding around 17% of the total.

Investments in the sector have increased over the past two to three years as a result of rising data consumption and supportive government regulations, it noted.

Only 22% of the stock of active data centres is currently LEED-certified, he continued.

Tier-II cities are gaining ground, yet metro areas continue to be the primary locations for data centres. Only 3% of India’s total data centre stock is now located in Tier-II cities.

Important data centre operators are considering Vijayawada, Nagpur, Raipur, Kochi, Patna, and Mangalore as viable locations for disaster recovery and edge data centre construction, though.

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