According to a latest report by real estate services firm JLL, real estate development in the local data centre market over the next two and half years may stand at $ 5.7 billion or Rs 47,373 crore.
The industry is expected to add 791 MW capacity and will require around 10 million sq.ft. of real estate space to accommodate this expansion. The surge in India's data center capacity is fueled by the adoption of AI, which necessitates the development of new data centers capable of meeting the energy, processing, and cooling needs of advanced computing.
Real estate and investment management company JLL has highlighted that Cloud Service Providers (CSPs) are realigning their requirements to factor in AI-led demand, which is contributing to the growth in investments. The anticipated expansion and progression of diverse AI disciplines are projected to create additional demand for data centers, expanding their capacity requirements and advancing their capabilities.
While in 2023, absorption of 147 MW was recorded, according to JLL as usage of AI gains pace, the demand for Indian data center (DC) is expected to be in the range of 650-800 MW during 2024-26.
Overall, these investments are expected to result in additional data center space of 10 million square-foot. Mumbai and Chennai, together, are expected to corner 73% of these real estate. With 4.41 million sq-ft, Mumbai will get over 44% of the new real estate, followed by Chennai (2.89 million sq-ft).
Overall, these investments are expected to result in additional data center space of 10 million square-foot. Mumbai and Chennai, together, are expected to corner 73% of these real estate. With 4.41 million sq-ft, Mumbai will get over 44% of the new real estate, followed by Chennai (2.89 million sq-ft).
While the national capital region of Delhi (0.66 million sq-ft), Bengaluru (0.53 million sq-ft) and Kolkata (0.5 million sq-ft) to get smaller shares, respectively.
This investment is not only significant for the data center industry but also for the digital economy of India, as it is poised to contribute to the country's growth as a major hub for digital innovation and services.
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