Real Estate Firms Eye Edge Data Centres in Tier 2 Cities
Real estate players are increasingly focusing on Tier 2 cities like Faridabad for the development of edge data centres, driven by the need for lower latency and real-time analysis.
Real EstateEdge Data CentresTier 2 CitiesDigital InfrastructureData CentresReal Estate MumbaiJun 01, 2025
By definition, Edge Data Centers are small, localised data processing facilities situated close to devices and end users. These centers help in enhancing performance and efficiency for real-time applications.
Executives of real estate firms say that emerging hubs like Faridabad among many tier 2 cities are gaining attention for their strategic connectivity and infrastructure readiness. At the same time, Tier 2 cities with abundant and affordable land are being eyed for new developments, particularly for edge data centres where proximity to local users is critical, executives say.
"The growing investment in data centres—projected at USD 20-25 billion by 2030—is a clear sign of how digital infrastructure is becoming more central to India's growth story. This shift is gradually reshaping real estate priorities as well," Uddhav Poddar, CMD of Bhumika Group, said. "Emerging hubs like Faridabad are gaining attention for their strategic connectivity and infrastructure readiness," he added.
He further elaborates that developers must now focus on "power availability, connectivity, and compliance with technical requirements that go beyond traditional commercial or industrial spaces." This means that real estate development for data centres requires a unique blend of technical expertise and strategic location planning.
According to a report by real estate and investment firm Colliers, while hyperscale data centres have dominated the narrative so far, the evolution of edge data centres is on the rise. A hyperscale data center is a very large facility designed to handle massive amounts of data, compute, and storage needs, typically used by large internet companies and cloud service providers.
"Interestingly, the market is expanding beyond large-scale colocation facilities and hyperscalers to edge data centres driven by increasing need for lower latency, real-time analysis, enhanced app performance, and business agility," said Jatin Shah, Chief Operating Officer, Colliers India.
India's DC capacity has grown over 4X times in the last 6-7 years and stands at 1,263 MW as of April 2025 and is expected to cross 4,500 MW by 2030 with USD 20-25 billion, the Colliers report added. On the supply front, India has witnessed 859 MW of capacity addition across the top seven primary DC markets since the beginning of 2020. In terms of geographical spread, 44 per cent of the new supply since 2020 was concentrated in Mumbai. This was followed by Chennai and Delhi NCR, which together accounted for 42 per cent of the capacity addition since 2020. (ANI)
Frequently Asked Questions
What are Edge Data Centres?
Edge Data Centres are small, localised data processing facilities situated close to devices and end users. They help in enhancing performance and efficiency for real-time applications.
Why are Tier 2 cities like Faridabad gaining attention for edge data centres?
Tier 2 cities are gaining attention due to their strategic connectivity, infrastructure readiness, and abundant affordable land, which is crucial for the development of edge data centres.
What are the key factors developers must consider for real estate development in data centres?
Developers must focus on power availability, connectivity, and compliance with technical requirements that go beyond traditional commercial or industrial spaces.
What is the projected investment in data centres by 2030?
The projected investment in data centres in India by 2030 is USD 20-25 billion.
How much has India's data centre capacity grown in the last 6-7 years?
India's data centre capacity has grown over 4X times in the last 6-7 years and stands at 1,263 MW as of April 2025.
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