Data Centre Growth to Propel Investment in Indian Real Estate Market

Data Centre Growth Set to Propel Indian Real Estate Market

Between 2023 and 2025, 678 MW will be added to the digital transformation industry in India due to the increasing use of digital technology, the migration of IT infrastructure to third-party providers, and the increased use of data from new and existing channels.

This expansion is anticipated to increase the demand for 9.1 million square feet of real estate space, necessitating a total investment of USD 4.8 billion in data centre infrastructure and real estate of the data centre sector, according to a study by JLL India.

The capacity of India's data centre industry is expected to reach 1,400 MW by the end of 2025, as a result of a robust pre-commitment pipeline that will result in an increase in supply.

Data centre industry in India to experience continued expansion with a robust pipeline of pre-commitments: JLL Study

It is anticipated that Mumbai, including Navi-Mumbai, will require the most capacity addition, necessitating 4.7 million square feet of real estate, followed by Chennai at 2.3 million square feet and Delhi NCR at 1.0 million square feet.

The pre-commitment of 350 MW by hyperscalers bodes well for India's data centre industry, according to JLL's Rachit Mohan, head-data centre advisory, India.

In addition, he stated that hyperscalers' public cloud service requirements have increased significantly and are anticipated to increase further.

This demand is fueled by the increasing adoption of digital technologies across industries and the outsourcing of IT infrastructure to third parties.