Rising asset class in INDIA: DATA CENTER
The Real Estate sector in India is booming and there is one segment of that growth that has fuelled this huge boom — DATA CENTER (DC) services. As DC enters its next phase of growth in India (2023–2026), the promise of reach is huge and will be supported by India’s internet economy expected to reach USD 1 trillion by 2030. Adoption of cloud computing, IOT and 5G will be pivotal for this boom.
As of 2023, India stands at 14th in terms of number of data centers (151) but has 880 million internet users, twice of USA which has more than 5,000 data centers. With affordable land and power cost and the gap of DC to internet user makes India an attractive market for operators, developers and of course Investors.
Investment banking firm Avendus Capital predicts that data centers will be the largest segment of real estates investments in India with an expected 40 percent CAGR to reach 1,700 MW capacity by 2025.
Domestics giants like DLF, Adani, Reliance are all investing huge dollars in this space. DLF is building a DC in noida and rumoured client is STT GDC, a Singapore based DC provider with leading floor print in the segment in India. Adani & EdgeConnex’s JV AdaniConneX has secured $213 million financing from international banks to futher increase their DC portfolio in India. Reliance is teaming up with industry leaders like Brookfield Infrastructure and Digital Realty to form an all-star venture to invest in development of data centres in India.
Investment opportunities are huge in this space which is a sure shot bet for coming 10 years.
Email: shubhamthakral@hotmail.com
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Read references to know more: Colliers, India-briefing
