Hyderabad data centre capacity to triple

Hyderabad data centre capacity is expected to grow from 32 megawatts in H1 2020 to 130 MW ending 2025, according to JLL's H1 2020 '(re)imagine Data Centres: Running India's Digital Economy' report.

The city is likely to attract hyper scalers due to various incentives provided for data centers and the presence of global in-house centres. During June-December 2020 India is expected to see 57 MW new capacity, twice that of 27 MW new supply during H1 2020.

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 report, the impact of data protection laws, increased shift from captive to colocation (colo) data centres 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 co-location sites which, via, lower upfront costs, heightened data security, uninterrupted services and scalability will also, influence investors to reimagine the potential of India's data canter space," said Sandip Patnaik , Managing Director- Hyderabad, JLL India

The 703 MW expected capacity additions translating to 9.3 million sq. ft. of space, will open up Greenfield investments for real estate developers and investors to fuel the future development of the sector, he added.