Data center capacity to grow 3-fold by 2025 presenting investment opp of USD 5 billion

New Delhi: The data center capacity in the county is likely to grow from the current 375 MW level to around 1,078 MW by the year 2025. This will present an opportunity to invest USD 4.9 billion, according to a report by JLL.

The effect of the data protection laws in the country coupled with heightened shift from captive to co-location data canters is going to fuel this growth. There is also implementation of newer tech such as 5G and edge computing which is going to drive the demand. 

The additional 703 MW capacity is likely to translate into 9.3 million square feet. This will provide greenfield investments opportunities to realty developers and investors.

There has been a jump of 8 percent in capacity addition of data centres in the first half of the current calendera year, taking the country’s overall colocation capacity to 375 MW. The first half of 2020 itself saw a supply addition of 27 MW. The total addition in 2019 was 48MW. Mumbai continued saw addition of 19 MW which was followed by Bengaluru at 5 MW.

Mumbai will see most of the capacity addition since it will continue to be the first choice for big cloud players as the city has great infrastructure advantage. Chennai is emerging as another attractive city because of its advantages of submarine cable landing stations.