Real estate demand for data centres likely to rise

27 May 2021 CW Team

The report Poised for Growth: Data Centres in India said that the data centre demand is anticipated to reach above 2,500 MW between 2021 and 2025 with the approval of 5G, artificial intelligence (AI), Internet of Things (IoT), increasing usage of cloud services and in smart cities.

Data centres are one of the slightest hit real estate asset groups by the coronavirus outbreak, including India. The Indian data centre market is expected to observe higher growth than the global average, the report said.

Niraj Karale, Director and Head, Data Centre Services, said that India’s data localisation laws, digital transactions, social media, increasing adoption of cloud technology, and growing use of e-commerce, will lead to increased demand for data thereby, accelerating the requirement for data centre and cloud services in the nation.

Presently, data centres in India own over 7.5 million sq ft of area, using over 650 MW of power. Above 8 million sq ft and 870 MW capacity is under development and will go online between 2021 and 2025. With the advanced growth of over 10 million sq ft, for 1200 MW, India is required to produce 3000 MW data-centre potential in near future.

The report stated that India is well-positioned to work as a regional data centre hub in Asia-Pacific and is likely to bring notable investment considering India’s rich network connectivity, availability of trained labour, low climate risk, cost-benefit, and strong data protection regulations.

However, The Indian market is at an evolving stage compared to other developing countries such as the United Kingdom, Japan, Germany and the US. As of February 2021, India had 123 data centres compared to 451 in the UK, 199 in Japan, 442 in Germany and 2,653 in the US.

Karale said that the government’s stated data centre policy is expected to increase investment in the area, advance the digital economy and increase the country’s needed infrastructure to provide for the increasing digital consumption.

Presently, the data-centre industry is resilient in cities such as Chennai, Bengaluru, New Delhi, Mumbai, and Hyderabad. Pune and Kolkata are some of the forthcoming cities with demand over these locations boosting due to enhanced network connectivity, digital transformation, initiatives by the local governments and proximity to consumers.

India is increasingly witnessing a huge opportunity in edge data centres, states the real estate adviser. Savills expects tier-II cities such as Lucknow, Ahmedabad, Coimbatore, Bhubaneshwar, Jaipur, Kochi, and Nagpur to view investments in edge data centres. These are smaller than the traditional data centres, established closer to the end-users and are on the edge of the network.

Image Source

A report by the property consultancy Savills India stated that the real estate demand for data centres is set to grow by 15-18 million sq ft in the following four to five years over major Indian cities. The report Poised for Growth: Data Centres in India said that the data centre demand is anticipated to reach above 2,500 MW between 2021 and 2025 with the approval of 5G, artificial intelligence (AI), Internet of Things (IoT), increasing usage of cloud services and in smart cities. Data centres are one of the slightest hit real estate asset groups by the coronavirus outbreak, including India. The Indian data centre market is expected to observe higher growth than the global average, the report said. Niraj Karale, Director and Head, Data Centre Services, said that India’s data localisation laws, digital transactions, social media, increasing adoption of cloud technology, and growing use of e-commerce, will lead to increased demand for data thereby, accelerating the requirement for data centre and cloud services in the nation. Presently, data centres in India own over 7.5 million sq ft of area, using over 650 MW of power. Above 8 million sq ft and 870 MW capacity is under development and will go online between 2021 and 2025. With the advanced growth of over 10 million sq ft, for 1200 MW, India is required to produce 3000 MW data-centre potential in near future. The report stated that India is well-positioned to work as a regional data centre hub in Asia-Pacific and is likely to bring notable investment considering India’s rich network connectivity, availability of trained labour, low climate risk, cost-benefit, and strong data protection regulations. However, The Indian market is at an evolving stage compared to other developing countries such as the United Kingdom, Japan, Germany and the US. As of February 2021, India had 123 data centres compared to 451 in the UK, 199 in Japan, 442 in Germany and 2,653 in the US. Karale said that the government’s stated data centre policy is expected to increase investment in the area, advance the digital economy and increase the country’s needed infrastructure to provide for the increasing digital consumption. Presently, the data-centre industry is resilient in cities such as Chennai, Bengaluru, New Delhi, Mumbai, and Hyderabad. Pune and Kolkata are some of the forthcoming cities with demand over these locations boosting due to enhanced network connectivity, digital transformation, initiatives by the local governments and proximity to consumers. India is increasingly witnessing a huge opportunity in edge data centres, states the real estate adviser. Savills expects tier-II cities such as Lucknow, Ahmedabad, Coimbatore, Bhubaneshwar, Jaipur, Kochi, and Nagpur to view investments in edge data centres. These are smaller than the traditional data centres, established closer to the end-users and are on the edge of the network. Image Source

Infrastructure Urban

17 Sep 2025

DCPC Prepares for Special Campaign 5.0 with Focus on E-Waste

The Department of Chemicals and Petrochemicals (DCPC), Ministry of Chemicals and Fertilisers, is gearing up for Special Campaign 5.0, to be held from 2nd to 31st October 2025. The initiative will focus on e-waste disposal as per MoEFCC’s E-Waste Management Rules 2022, space optimisation, and enhancing workplace efficiency across field offices.Special Campaign 4.0, conducted between October 2023 and October 2024, delivered notable results in record management, grievance redressal, scrap disposal, and cleanliness drives.Key outcomes of Special Campaign 4.0Records management: 2,443 physical fil..

Real Estate

17 Sep 2025

BlackRock India Leases 1.4 Lakh Sq Ft in Bengaluru

BlackRock Services India, the domestic arm of global asset manager BlackRock, has leased 1.4 lakh sq ft of office space at IndiQube Symphony in Bengaluru, according to Propstack data. The 10-year deal is valued at around Rs 4.10 billion.The lease, among the largest transactions in India’s co-working sector, highlights the growing preference of global institutions for flexible office providers. The agreement, commencing October 1, 2025, covers ground plus five floors in KNG Tower 1 at Ashoknagar, MG Road — one of Bengaluru’s prime commercial hubs.As per the lease document, BlackRock will ..

Infrastructure Transport

17 Sep 2025

L&T Bags Rs 25–50 Bn Order for Mumbai-Ahmedabad Bullet Train Track Works

Larsen & Toubro’s (L&T) Transportation Infrastructure business has secured an order valued between Rs 25 crore and Rs 50 billion from the National High Speed Rail Corporation Limited (NHSRCL) for the Mumbai-Ahmedabad High Speed Rail (MAHSR) corridor.The contract, Package T1, involves the design, supply, construction, testing, and commissioning of 156 route km of high-speed ballastless track on a Design-Build Lump Sum Price basis. The stretch runs from Mumbai’s Bandra-Kurla Complex to Zaroli village in Gujarat and includes 21 km of underground track and 135 km of elevated viaduct.Se..