Mumbai’s data centre capacity to grow more than 2-fold by 2023: JLL report

Mumbai’s data centre capacity is likely to grow by more than two times its current capacity by 2023, according to a JLL report.

Mumbai with 199 MW IT load is the leading data centre hub of the country with nine internet cable landing and assured power supply, said the report titled ‘2020 India Data Center Market Update’.

According to JLL, the capacity is likely to reach 529 MW by 2023.

“Mumbai is the most preferred destination for cloud players with a 60 per cent share of the occupied space due to its excellent infrastructure support. The state has provided various incentives for setting integrated data centre parks,” said Karan Singh Sodi, Regional Managing Director – Mumbai, JLL India.

“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 per cent,” he said.

According to Rachit Mohan, Head, Data Center 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,” Mohan said.

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.

Mumbai and Chennai are expected to drive 73 per cent of the sector’s total capacity addition during 2021-23, while other cities like Hyderabad and Delhi-NCR emerging as new hotspots.

Samantak Das, Chief Economist and Head of Research & REIS (India), JLL noted that India’s data centre industry is expected to add 560 MW during 2021-23 leading to a real estate requirement of 6 million square feet.

The supply addition will be complemented by densification of racks and servers, sustainable energy sourcing and use of indigenous resources, he said, adding that rising demand is leading operators to pursue ambitious expansion plans, while some are adopting the acquisition route to enter Indian markets.