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HomeDigit NewsIndia's data center industry is worth US$5.6 billion; Set To Grow Further

India’s data center industry is worth US$5.6 billion; Set To Grow Further

At present, there are 138 data centres across India spanning about 11 million square feet and having 737 MW of IT capacity (building ready).

There are currently 138 data centers across India covering approximately 11 million square feet and 737MW of IT capacity (ready to build). At least 57 percent of this current IT capacity is located in Mumbai and Chennai combined.

According to the latest report by Anarock and Binswanger “Under the Lens: India’s Data Center Explosion”, over 45 data centers covering approximately 13 million square feet and 1,015 MW of IT capacity are set to be built in India by 2025 – ending as demand surges amid the Covid -Pandemic.

In terms of IT capacity (almost 1,015 MW), more than 69 percent of this planned new offering will be in Mumbai and Chennai.

With the addition of this new planned coverage, the country will have 183 data centers with approximately 24 million square feet and at least 1,752 MW of total IT capacity.

“India is on the cusp of data center development,” say the consultants.

Co-location data centers, once a small, fragmented industry, are rapidly evolving into a large, potentially consolidated industry, she added.

Devi Shankar, President – Industrial & Logistics and Data Centers at Anarock Capital said, “The current size of the Indian data center industry is approximately $5.6 billion and is bound to keep growing.” The unprecedented crisis brought about by the outbreak triggered by Covid-19 has propelled the data center business and provided an unexpected tailwind.

“Technology adoption and digitalization across all sectors has been accelerating across the globe, and India has also made a leap forward by at least a decade in recent years. The estimated total data center demand in the country is expected to be 2,100 MW as of FY2025, with a mix between hyperscalers and enterprises – 35:65 (without own hyperscaler capacity),” said Shankar.

The report further said that there is an additional potential of almost 2,688 MW of future unplanned delivery in India. Land for this coverage has been reserved by data center operators, but projects are likely to be planned based on actual demand and/or the outcomes of previous planned phases.

Jeff Binwanger, Managing Partner at Binswanger, said, “Companies are really starting to reconsider where in the world they want to locate their operations, where they want to relocate, and where they want to manufacture, distribute and deploy their database and technology facilities. Data centers are currently a lynchpin for many decisions, particularly in Asia Pacific and India.”

The report also highlighted the survey conducted among IT professionals in India to analyze trends in the Indian data center industry as perceived by professionals managing data-related infrastructures in their organizations.

The survey was aimed at data managers from different industries and company sizes.

“30 percent of companies are considering hybrid hosting services (cloud data center) for data management. Monitoring, assessment and design of the IT infrastructure are top services that IT experts like to outsource,” say the consultants.

According to the survey, the top priorities of IT professionals are operational efficiencies and cost savings in their data centers, data compression and improving energy use effectiveness, and technology improvements.

“58 percent of IT professionals believe that co-location is better than own data centers. 72 percent of professionals have experienced data deluge in their organizations after Covid-19. “64 percent of companies want to power their data centers with more electricity than 60 percent clean energy in the next 2 years,” the report said.

As many as 67 per cent of professionals find it challenging to recruit and retain quality talent in the IT domain.


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