Data centre capacity of Mumbai to reach 529 MW by 2023

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Mumbai: Data centre capacity of Mumbai is expected to grow by 2.65x to 529 MW load by 2023, as per JLL’s report.

The JLL‘s report titled 2020 India Data Center Market Update revealed that Mumbai with a 199 MW IT load is India’s leading data centre hub with nine internet cable landing and assured power supply.

Data centre capacity of Mumbai
According to Karan Singh Sodi, Regional MD – Mumbai, JLL India, the financial capital of India is the most preferred destination for cloud players with a 60% share of the occupied space due to its excellent infrastructure support.

“The state has provided various incentives for setting integrated data centre parks. The new supply additions in the city are backed by pre-commitment from cloud players. The city’s strong demand is driven by BFSI, media and IT/ITes companies. leading to high occupancy levels of 95%,” added Sodi.

According to Rachit Mohan, Head – Data Centre Advisory (India) JLL, India’s colocation data centre industry witnessed unprecedented absorption of 102 MW during 2020, notching higher absorption than most key markets of Europe and America.

“Fuelled by longer-term trends of rising cloud adoption, increasing digitalisation and progressive legislation, we anticipate increased demand for colocation space nationwide,” said Mohan.

“Rising demand led data centre operators and developers to pursue ambitious expansion plans, while some adopted the acquisition route to enter Indian markets, which we expect to continue,” he added.

Colo capacity grew by around 28% to reach 447 MW in 2020 from 350 MW in 2019, as per the report. As the data centre landscape continues to evolve, the industry is expected to grow exponentially to reach 1,007 MW by 2023 from its existing capacity of 447 MW.

With the growing reliance on digital connectivity, demand is likely to ramp up further due to the imminent rollout of 5G rollout, IoT-linked devices, data localisation and cloud adoption.

However, India’s data centre sector will require an investment of $3.7 billion over the next three years to fulfil the 6 million sq. ft greenfield development opportunity for the industry.

India’s renewable energy capacity at 90 gigawatts accounts for a 25% share of the installed power capacity and provides tremendous scope for the development of green data centres.

Data centre capacity of Mumbai and Chennai are expected to drive 73% of the sector’s total capacity addition during 2021-23. While other cities like Hyderabad and Delhi NCR are emerging as new hotspots.

Robust pre-commitments by global cloud players in the established markets of Mumbai and Pune continues owing to prevailing infrastructure, while new markets like Hyderabad are gaining momentum in this space.

“India’s data centre industry is expected to add 560 MW during 2021-23 leading to a real estate requirement of 6 million sq. ft. The supply addition will be complemented by densification of racks and servers, sustainable energy sourcing and use of indigenous resources,” said Dr Samantak Das, Chief Economist and Head of Research & REIS (India), JLL.

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