India's data centre industry capacity to double by 2023 to 1,008 MW: Report
The capacity of data centre industry
is expected to double by 2023 to over 1,000 MW to meet the rising demand amid
sharp growth in digitalisation, according to property consultant JLL.
The industry's capacity is expected to double from 499 MW in
January-June 2021 to 1,008 MW by 2023, it added. MW indicates IT design power
load.
The capacity expansion is "driven by strong digitalisation,
rising cloud adoption and ambitious growth plans of data centre operators",
JLL India said in a
statement.
JLL released its 'H1 2021 India Data Centre Market
Update' on Tuesday.
Stating that acceleration of digitalisation has forced enterprises
to scale up their IT infrastructure, the consultant said a strong demand for
co-location/cloud facilities, which offer scalability, security, and
connectivity at lower costs, has been witnessed across India.
Investors and global data centre players have increased their
commitment during the last six months in the India market by announcing joint
ventures to meet expected demand, it added.
"The demand momentum which picked up pace in 2020, continues
to grow unabated. The Indian data centre industry witnessed 46.4 MW absorption
during H1 2021 - equivalent to 90 per cent of supply addition during the period
(H1 2021), indicating robust absorption growth," said Rachit Mohan, Head,
Data Centre Advisory-India; Co-Head, Office Leasing Advisory, Mumbai, JLL.
He said the demand has been growing rapidly on increased 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. Home-grown video and gaming platforms in midst of
robust user growth are also fuelling the data centre industry demand. Furthermore,
telecom players are formulating the rollout of 5G which is expected to drive
exponential growth in data consumption, Mohan said.
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