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Data centers: Scaling up in the green age

September 21, 2023 131 0 Data Science & AI Community

Data centers: Scaling up in the green age

India’s data center stock is likely to double to about 20 mn sq ft by 2025 from current 10.3 mn sq ft, led by increased adoption of smart devices, e-commerce and cloud services.

Data centers have witnessed significant growth in the last 5 years with total capacity growing four-fold from 2.7 mn sq ft in 2017 to 10.3 mn sq ft in 2022. Led by increased adoption of cloud computing, Artificial Intelligence (AI) and rise of the Internet of Things (IoT), data center stock is expected to cross 20 mn sq ft by 2025, according to Colliers’ report “Data center: Scaling up in Green age”. Supportive regulatory policies such as draft Digital Personal Data Protection Bill 2022 will further aid growth and investments in the sector.

  • Growth and investments in the sector will be driven by expansion of global hyperscalers in India, who are ramping up expansions in the country. 2023 has seen landmark investments and pre-commitments from global hyperscalers in India’s data center space. In the beginning of 2023, Tech giant Google signed a 28-year land lease agreement for its new data center in Navi Mumbai aimed at expanding its cloud infrastructure in India.
  • While the penetration of edge data centers in India is currently nascent, exponential growth in data consumption will require data centers to be closer to the end-user, translating in increased demand for edge data centers. Edge deployments is the next big opportunity, as the emergence of edge computing will give a leg-up to the edge deployments in next 4-5 years. 
  • Metro cities remain core hubs for data centers, with Mumbai housing the largest data center capacity at 49% share. Mumbai & Chennai are expected to account for 40% of the new additions during 2023 and 2024
  • While Tier I cities are preferred locations for data center expansions, Tier-II cities such as Vijayawada, Nagpur, Raipur, Kochi, Patna, and Mangalore are also witnessing steady growth in data center space. 
  • According to Colliers, as of 2022, around 22% of the existing data center stock is LEED certified. However, at a time when occupiers as well as cloud operators are aggressively chasing their ESG targets, incorporating sustainable practices in energy intensive data centers has become critical.

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Colliers India
Sukanya Dasgupta, Head Marketing and Communications - sukanya.dasgupta@colliers.com

Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 66 countries, our 18,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 28 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of approximately 20% for shareholders. With annual revenues of $4.5 billion and $98 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors, and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.



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