India’s data center stock is likely to double to 23 mn sq ft, translating to a total investment potential of USD10 Billion over the next 3 years across the top 7 cities, according to the CII - Colliers’ latest report “India Data Centers: Entering Quantum Growth Phase”. The report was unveiled at the second edition of CII Conference on Tech in Real Estate.
“Significant expansion of the Indian economy by 2047, will be powered by real estate. A multifold economic expansion will boost demand across all the asset classes - residential, commercial, warehousing, industrial land developments, etc. - will grow at a multiplier rate to accommodate the growing needs of the economy and consumption needs of the individuals. In recent years, the global real estate sector has witnessed a paradigm shift in its approach to sustainability, with the growing recognition of the Environmental, Social, and Governance (ESG) factors. Environmental, Social, and Governance (ESG) standards have emerged as crucial factors for analyzing the long-term viability and ethical practices of businesses in a variety of industries, including real estate,” said Dr K Nandakumar, Chairman, CII Maharashtra State Council.
Driven by quantum growth in data consumption and cloud adoption, data centers have witnessed significant growth post pandemic with total capacity growing two-fold since 2020. As of August 2023, the data center capacity across the top 7 cities stands at 819 MW, spread across 11.0 million sq feet.
Led by exponential increase in data consumption, improving regulatory framework and robust investments in the sector, the data center capacity is likely to double up faster in the next phase of growth, crossing 1,800MW by 2026. With the Digital Personal Data Protection Bill 2023 being passed by both houses of the legislature and set to become a law soon, the Data Center story in India has all the markings to embark on a hitherto unseen success narrative.
