7.8 million sq ft real estate space required for data centre capacity expansion by 2024: JLL
Increasing data usage in the financial, entertainment and retail domain and higher commitment by cloud service providers will drive Indian Data Centre (DC) industry growth, leading to demand for 7.8 million sq. ft real estate space in the next two-and-a-half years. This will entail an investment of $4.6 billion, according to JLL’s report, Data Centre Update: H1 2022.
The industry is expected to double in the next two-and-a-half years to 1318 MW from the existing 637 MW capacity.
“Mumbai on account of the highest share of capacity addition would entail a demand for 4.6 million sq ft, followed by Chennai at 1.9 million sq. ft and NCR-Delhi at 0.7 million sq ft. Regulatory approvals and construction period would lead to a 3–4-year time frame for the DC capacity to become operational. Some players are opting for the conversion of existing industrial buildings to DC facilities by using retrofit options to meet technical parameters,” said Samantak Das, Chief Economist and Head of Research & REIS at JLL India.