India's Data Centre Market Set to Attract $60 Billion Investment by 2024
Real estate consultant CBRE South Asia has released a new report titled '2024 India Data Centre Market Update', highlighting the significant growth and investment opportunities in the data centre market.
India Data CentreCbre South AsiaData Centre InvestmentDigital Economy5g TechnologyReal Estate NewsDec 11, 2024
The rapid digitization of businesses, the increasing demand for cloud services, and the government's push for digital initiatives are the primary drivers of this growth. According to CBRE, the data centre market in India has been expanding at a rapid pace, and the trend is expected to continue in the coming years. The report highlights that the market is not only attracting domestic investments but is also gaining attention from international players looking to tap into the growing digital economy.
The report also points out that the rise of 5G technology and the Internet of Things (IoT) is expected to further fuel the demand for data centres. With the increasing number of connected devices and the growing volume of data generated, there is a need for more robust and efficient data storage and processing solutions. This has led to a surge in the development of new data centres, particularly in key cities like Mumbai, Delhi, and Chennai.
CBRE South Asia, established in 1996, is a leading real estate consultancy firm that provides a wide range of services including advisory, asset management, and transaction management. The company has a strong presence in major cities across India and is known for its in-depth market research and analysis.
The report emphasizes that the data centre market in India is not just about building more facilities; it is also about enhancing the existing infrastructure to meet the evolving needs of businesses. This includes investments in energy-efficient technologies, advanced cooling systems, and enhanced security measures to ensure the reliability and security of data.
One of the key findings of the report is the increasing trend of data centre colocation services. Colocation allows businesses to rent space in a data centre facility, which is managed by a third party. This model provides businesses with the flexibility to scale their operations as needed without the upfront costs of building and maintaining their own data centres. The report suggests that colocation services are becoming increasingly popular, especially among small and medium-sized enterprises (SMEs).
The environmental impact of data centres is also a growing concern, and the report highlights the efforts being made to address this issue. Many data centre operators are adopting sustainable practices, such as using renewable energy sources and implementing energy-efficient cooling systems. These initiatives not only help reduce the carbon footprint of data centres but also make them more attractive to businesses that are committed to sustainability.
CBRE's report also emphasizes the role of the government in supporting the growth of the data centre market. The Indian government has introduced several policies and incentives to promote the development of data centres, including tax breaks and streamlined regulatory processes. The report suggests that these measures have played a crucial role in attracting both domestic and foreign investments.
In conclusion, the data centre market in India is poised for significant growth, driven by the increasing demand for digital services and the adoption of advanced technologies. The $60 billion investment projection for the period 2019-2024 underscores the confidence of investors in the long-term prospects of this market. As the industry continues to evolve, the focus will be on building resilient, secure, and sustainable data centre infrastructure to meet the needs of a rapidly digitalizing economy.
Frequently Asked Questions
What is the projected investment in India's data centre market by 2024?
The projected investment in India's data centre market by 2024 is $60 billion.
What are the primary drivers of growth in the data centre market in India?
The primary drivers of growth in the data centre market in India include the rapid digitization of businesses, increasing demand for cloud services, and the government's push for digital initiatives.
Which cities in India are seeing the most development in data centres?
Key cities like Mumbai, Delhi, and Chennai are seeing the most development in data centres.
What is colocation in the context of data centres?
Colocation in the context of data centres refers to a model where businesses rent space in a data centre facility managed by a third party, providing flexibility to scale operations without the upfront costs of building and maintaining their own data centres.
What sustainable practices are data centre operators adopting to reduce environmental impact?
Data centre operators are adopting sustainable practices such as using renewable energy sources and implementing energy-efficient cooling systems to reduce the carbon footprint of data centres.
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