Mumbai & Chennai lead India’s growing data centre market

India currently houses more than 800 million Internet users

The data centre sector in India is primed for continuous growth, with much of it concentrated in Mumbai and Chennai, according to The Economic Times.

The increased adoption of digital infrastructure prompted by the epidemic, rising digital usage, cloud consumption, and the national 5G rollout will all help the Indian data centre business grow.

India currently houses more than 800 million Internet users. This number is expected to grow to 900 million by next year, ETCIO.com reported.

The market, as of H1 2021, stood at a capacity of 499MW, with Mumbai accounting for more than 45 percent of it. By 2023, India’s data centre market is projected to reach 1008MW.

According to Sharad Sanghi, MD, NTT Ltd. in India, Mumbai will remain the largest data centre hub in the country for three reasons. First, it has the best power infrastructure; the availability of power landing infrastructure and fibre connectivity make it the best place for data centres; and lastly, it is the country’s business hub, which means higher demand.

Chennai is currently the second-largest data centre hub in the country with 62MW. This is slated to reach 115MW by next year.

More: India data centre market to be worth USD10.1 billion by 2027

Rachit Mohan, head of Data Centre Advisory at JLL India, even shared that factors such as having the fastest internet speed in the country, green energy options, and availability of submarine cable landing infrastructure help Chennai become a high-performing data centre hub after Mumbai.

Rachit also said, “India’s digital transformation is expected to create an economic value of $1 trillion by 2025. Apart from existing sectors, new areas like agriculture, healthcare, logistics, jobs and skills market, e-governance and other areas, coupled with advanced technologies, will lead to significant growth [in] data storage and computing. The Indian data centre industry will act as the backbone, enabling India to emerge as a global hub.”

Delhi-NCR and Hyderabad are also emerging areas for data centres.

The Property Report editors wrote this article. For more information, email: [email protected].