Mumbai Dominates India's Data Centre Landscape with 54.9% Market Share
India's data centre capacity has grown by 21% in the first half of 2024, with Mumbai leading the pack. Chennai, Bengaluru, and Pune follow closely behind.
Data CentreIndiaMumbaiSavillsHyperscalersReal Estate PuneAug 05, 2024
Chennai follows closely behind with a 12.3% market share, while Bengaluru and Pune hold 8.2% and 7.2% respectively. The report highlights the growing demand for edge data centres in Tier-II and Tier-III cities, which are smaller facilities located closer to their users.
Between January and June 2024, the country saw an increase of approximately 71 MW in IT capacity across key data centre markets. Transactions involving around 200 MW of IT capacity took place during this period. India's overall stock of data centres has risen from 778 MW to 942 MW, marking a 21% year-over-year growth.
The demand for colocation and related services is primarily driven by hyperscalers, BFSI (Banking, Financial Services, and Insurance), IT and ITeS (Information Technology and Information Technology-enabled Services), and service sectors. These industries heavily rely on data centre operators to manage their vast amounts of data.
Although supply is expected to reach 350 MW, operators are expanding their services to include networking, cloud solutions, specialized hardware, and other managed services. This shift towards providing a broader range of services is aimed at catering to the evolving needs of enterprises and hyperscalers.
The report notes that enterprises control 10% of the equity, while hyperscalers hold 22%. Enterprises and hyperscalers together account for the remaining 68% of usage, reflecting diverse usage patterns in the sector.
The expansion of data centres is driven by the need for ultra-low latency for mobile devices, the advent of 5G, and increasing internet traffic. This, in turn, is boosting demand for edge data centres in specific locations.
Information
Savills is a global real estate services provider with a strong presence in India. The company's report provides valuable insights into the country's data centre market, highlighting trends, opportunities, and challenges.
Savills is a leading global real estate services provider with over 39,000 employees worldwide. The company provides a range of services, including advisory, management, and transaction services, to clients across the globe.
Keywords Mumbai, data centre, India, Savills, hyperscalers, BFSI, IT, ITeS, cloud solutions
Tags data centre, India, Mumbai, Savills, hyperscalers, BFSI
FAQs
Q What is the current market share of Mumbai in India's data centre market?
A Mumbai holds 54.9% of the total data centre capacity in India.
Q Which cities follow Mumbai in terms of data centre capacity?
A Chennai, Bengaluru, and Pune follow Mumbai in terms of data centre capacity, with market shares of 12.3%, 8.2%, and 7.2% respectively.
Q What is driving the demand for edge data centres in Tier-II and Tier-III cities?
A The demand for edge data centres in Tier-II and Tier-III cities is driven by the need for ultra-low latency and the increasing internet traffic.
Q Who are the primary drivers of demand for colocation and related services?
A Hyperscalers, BFSI, IT and ITeS, and service sectors are the primary drivers of demand for colocation and related services.
Q What is the expected supply of data centre capacity in India?
A The expected supply of data centre capacity in India is 350 MW.
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Frequently Asked Questions
What is the current market share of Mumbai in India's data centre market?
Mumbai holds 54.9% of the total data centre capacity in India.
Which cities follow Mumbai in terms of data centre capacity?
Chennai, Bengaluru, and Pune follow Mumbai in terms of data centre capacity, with market shares of 12.3%, 8.2%, and 7.2% respectively.
What is driving the demand for edge data centres in Tier-II and Tier-III cities?
The demand for edge data centres in Tier-II and Tier-III cities is driven by the need for ultra-low latency and the increasing internet traffic.
Who are the primary drivers of demand for colocation and related services?
Hyperscalers, BFSI, IT and ITeS, and service sectors are the primary drivers of demand for colocation and related services.
What is the expected supply of data centre capacity in India?
The expected supply of data centre capacity in India is 350 MW.
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