Technological advancement and adaptation across businesses, government offices, and industries have gained momentum in recent years towards efficiency, automation, a digitally driven economy, and ease of business processes. The role of a data centers in the overall process is crucial to efficiently drive digital-led operations, It matters in almost all computing processes, storage, processing network, and real-time applications. In India, data center demand is increasing, operating companies are revamping their capacities.
In India, the first data center was launched in 2008 in Hyderabad. After this, NDC was launched in Pune in 2010, in 2011 NDC in Delhi, and then NDC in 2018 in Bhubaneshwar. All the data centers facilitate in setting up strategic infrastructure that supports quick scalability, efficient management, and optimization of resources.
As per Arizton’s research, the value of the data center market in India in 2021 was $4.35 billion, and it is assumed that by 2027 it will reach $10.09 billion. One of the most common reasons for this growth is the measures taken by the government, which aim to enhance the digital infrastructure. These measures include the Digital India initiative, new data localization laws, data center classifications as infrastructure assets, etc. All these initiatives have attracted data centers to the country.
Five Massive Data Centres In India By 2025
According to the latest report shown on Tuesday, fascinated by the increased demand, more than 45 data centers with an IT capacity of over 1,015 MW and spread over 13 million square feet have planned to enter the data center market of India by 2025.
According to the ANAROCK-Binswanger report, by the end of 2025, there will be 183 data centers in India with an IT capacity of 1,752 MW and spanning 24 million square feet.
If we talk about the IT capacity (around 1015 MW), more than 69% of this new supply will be set up in Chennai and Mumbai, with approximately 51% alone in Mumbai.
Currently, in India, there are 138 data centers across various locations. These data centers span an area of 11 million square feet and have an IT capacity (building ready) of 737 MW.
The minimum of 57% of the IT capacity of data centers in India is collectively in Chennai and Mumbai.
According to the President, Industrial, Logistics and Data Centres, ANAROCK Capital, Devi Shankar, currently, the size of the data center industry is around $5.6 billion and will increase. It is estimated that the demand for data centers in the country will reach 2,100 MW by the financial year 2025 with a mix of enterprises and hyperscalers.
According to the report, the land has already been locked for this planned supply by DC operators. However, the planning will likely occur according to the actual demand and/or result of the earlier phases. Nearly 78% portion of this unplanned IT capacity will be focused in Hyderabad and Mumbai.
According to the Managing Partner, Binswanger, Jeff Binwanger, data centers are the basis for making many decisions, especially in India and Asia Pacific.
While around 30% of the companies are looking for hybrid hosting services (data center + cloud) to manage their organizational data, around 72% of the organizations have noticed an increase in their data after COVID-19.