India colocation data center industry to double to 1008 MW by 2023

According to JLL, India’s colocation data center (DC) industry is expected to double by 2023. The global real estate company expects H1 IT load to increase from 499 megawatts (MW) in 2021 to 1008 MW in 2023 in 2021. This, in turn, would require more than five million square feet of real estate, according to JLL Research.

Mumbai and Chennai are expected to become major DC hubs due to its guaranteed power supply, submarine cable supply and large user markets.

One of the biggest drivers of growth will also be the adoption of the draft Personal Data Protection Act by the Joint Parliamentary Committee, which JLL believes will be a significant milestone for India’s colocation DC industry, which is engaged in mass storage. and provides IT infrastructure for computing needs.

“The importance of information as data has become increasingly important over the years, with the entire digital revolution being driven by the use of data. The colocation industry is expected to benefit from the legislation due to the state of data storage in the country. Rachit Mohan, Head, Data Center Advisory – India, Co.

Ltd. said, “The potential of the industry is evident from the fact that three central statutes and four states have formulated sector policies for data centers, while four more states are implementing their policies. -Head, Office Lease Consultancy – Mumbai, JLL.

The central government has underlined the importance of this sector by formulating a data center park policy and creating four data center economic zones to make India a global DC hub. The draft policy aims to give the sector “infrastructure” status that reaps the benefits of using long-term credit from domestic and international lenders.

“The growing digital economy requires regulation to protect the rights of Indian users by storing the details of digital transactions locally. The Reserve Bank of India has issued a directive that imposes data localization requirements on service providers/intermediaries/third-party vendors and other entities in the payment ecosystem.

The financial regulator has issued several guidelines for financial intermediaries to comply with localization rules. Local storage of digital transactions has already increased the demand for data center from the BFSI sector,” said Samantak Das, chief economist and head of research and REIS (India), JLL.