India is expected to see at least 28 large hyperscale data centers constructed over the next three years. These will span over 16 million sq ft with at least 1,400 MW of IT power capacity, equaling nearly 0.6 million sq ft and 50 MW per facility on an average per hyperscale data centre, the report said.
“While India has been seeing a massive digital thrust since 2014, the current government’s data localization policy has paved the way for hyperscale data centres to handle the increasing data consumption. Hyperscale facilities have clear advantages over smaller colocation centres as they can cater to the huge domestic data warehousing demand creating operating efficiencies and thus, pass on cost benefits to their customers,” said Anuj Puri, Chairman, Anarock Group. According to him, smaller colocation facilities will need to reassess their competitive position and may need to repurpose to ensure survival.”
Data centre industry’s revenue has grown thrice in last six years from $386 million in 2014 to $ 1.01 billion in 2019. At least $7 billion leveraged capital investment is committed or in stages of being deployed in this segment.
India currently has nearly 126 third-party data centres spanning 7.5 million sq ft, and a cumulative IT Power Capacity of 590 MW. While 53 players own and operate these 126 third-party data centres, the capacity is highly concentrated among the top 12 players who operate around 95% of the total IT Power capacity in the country.
Mumbai’ under-sea cable landings currently make it the most popular location for data centres and apart from Mumbai, Chennai will also be a preferred location in the future.
Upcoming supply is expected to be concentrated amongst Mumbai and Chennai, followed by NCR and Hyderabad also getting a fair share of interest. Mumbai and Chennai together will witness around 60% of total future capacity, with NCR and Hyderabad contributing another 33%.
According to the report, Indians’ data consumption increased from 0.3 GB/user/month in 2014 to 10 GB/user/month in 2018; per capita consumption to hit 25GB/month by 2025 – total data traffic in the country likely to touch 21 EB (exabytes) per month.