Investors (re)imagining India data center market as capacity expected to triple by 2025: JLL

India’s data center capacity is expected to grow from 375 MW in H1 2020 to 1,078 MW by 2025, presenting a USD 4.9 billion investment opportunity. According to JLL’s H1 2020 ‘re(Imagine) Data Centers Running India’s digital economy’ report, the impact of data protection laws, increased shift from captive to colocation (colo) data canters and implementation of new technologies like 5G, edge computing and the internet of things (IoT) will drive sustained investor demand for this asset class over the next five years.

“India’s data center market will outperform over the next five years, supported by a combination of growing digital economy, increased investor interest and stable long-term returns. Growth in the sector will be further powered by colocation sites which, via, lower upfront costs, heightened data security, uninterrupted services and scalability will, further, influence investors to reimagine the potential of India’s data canter space. The 703 MW expected capacity additions is translating to 9.3 million sq. ft. of space, which will open up greenfield investments for real estate developers and investors to fuel the future development of the sector,” said Ramesh Nair, CEO & Country Head, India, JLL.

India’s data canter industry has provided immense boost to the digital economy during H1 2020. From an average 270 petabytes (PB) to 308 PB during week of March 22nd, a 14% rise in daily data consumption was observed during the lockdown.