Monday, November 30, 2020
News
NEWS HOME
»
PRN INDIA
Indian data center stock to more than double to 20 million sq ft by 2023 from 9.0 million sq ft in 2020: Colliers International India
  SocialTwist Tell-a-Friend  
   

GURUGRAM, India, Oct. 22, 2020 /PRNewswire/ -- India's co-location data center (DC) stock is likely to more than double by 2023 to about 20 million sq feet, from the current 9.0 million sq feet. The thrust on DCs is led by increasing digitization, and growing adoption of cloud and IoT devices. Further, Indian government regulations to localize the data and Reserve Bank of India's aim to increase digital transactions by 10X are strongly driving the demand for DC assets in Indian real estate.

Colliers notes that India currently has about 1.2 megawatt per user of co-location DC capacity  as compared to Europe's  19.1 MW per user DC capacity, providing a huge opportunity for DC operators and investors in the country.

"There is no doubt on India's data storage demand which continues to expand exponentially. With the continuing clamour of Investors for stable assets in India, Data Center business in India is likely to provide steadiness and diversification in the income profile. The ecosystem for the business in India is fast evolving with experienced operators' entry in the market, large developers building world class assets and supported by proactive legislative support. The Data Center business is likely to provide investors focused on India across Infrastructure, Technology and Real Estate an unique Investment opportunity over the next few years," said Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers International India.              

Between January and August 2020, Colliers noted that DCs attracted investments of about USD396 million (INR29 billion), accounting for about 46% of the total private-equity investments in Indian real estate. The inflow was led by a deal each in Delhi and Mumbai. This interest in DCs resonates with Colliers April 2019 survey 'Investors in India look to Office, DCs', where about 63% of the respondents preferred DCs as their first choice among newer avenues for investment.

Mumbai leads DC stock, mainly due to its position as the financial capital of India, the presence of under-sea submarine cables,  favourable government policies.

"Mumbai has the largest DC market in India due in part to its position as India's financial capital, and the accompanying data volume, as well as its proximity to the under-sea submarine cables and incentives from the government. We believe that MAHAPE, the entire belt from Mumbai to Pune( Pune being an IT hub), along with Belapur, Thane-Belapaur Road, and Panvel, are locations worth considering for setting up co-location DC, led by the availability of land, new airport, trans harbour link, and access to under-sea submarine cables," said Anil Dwivedi, Director, Project Management (Mid-India) at Colliers International.

"Though data was globally recognized as the new oil and a valuable resource more than a decade ago, the ongoing pandemic has made us realize its importance in India. As more and more daily operations are carried out digitally, the traffic and consumption of data is rising exponentially, providing a thrust to the need for colocation DCs. We expect this asset class to become an extremely important asset class in the next few years," added Siddhart Goel, Senior Director, Research, Colliers International India.

Co-location DCs to get boost from healthcare and pharmaceuticals, edTech, gaming firms.

Colliers feels that co-location DCs will also target growing sectors including healthcare and pharmaceuticals, edTech, gaming, over-the-top entertainment, urban mobility, and agricultural firms as the upcoming 5G network is expected to open new opportunities for consumers and enterprises. 5G-enabled digitalization revenues in India are expected to touch USD17 bn by 2030 impacting healthcare and manufacturing industries.

The Colliers Capital Markets & Investment Services team projects that a prospective co-location data center operator can achieve break even in about six years, considering the costs for inputs such as land required, building and equipment like power backup, transformers, racks and other operational expenditure.

Considering the customer stickiness in this business, as well as high barriers to entry, Colliers believes that DCs are a long-term play for investors looking for long-term stabilized net yields of more than 15% per annum. Colliers recommend that developers with a pan-India or strong regional presence either partner with established DC operators or build in-house capabilities. Furthermore, a strong DC portfolio can also be converted into an attractive REIT offering in the future, which can be seen from countries in the APAC region such has Singapore, China and Australia though the US has the largest number of such REITs.

Download the full report here:  https://www2.colliers.com/en-IN/Research/Colocation-data-centers-in-India.

To lease or invest in Data Centers, please drop an email at  Sukanya.dasgupta@colliers.com.

About Colliers International Group Inc.:

Colliers International (NASDAQ: CIGI) (TSX: CIGI) is a leading real estate professional services and investment management company. With operations in 68 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice and services to maximize the value of property for real estate occupiers, owners and investors. For more than 25 years, our experienced leadership, owning approximately 40% of our equity, has delivered compound annual investment returns of almost 20% for shareholders. In 2019, corporate revenues were more than $3.0 billion ($3.5 billion including affiliates), with $33 billion of assets under management in our investment management segment.

For the latest news from Colliers India, visit http://www.colliers.com/en-gb/india. To follow us on twitter,  simply click on this twitter handle @Colliersintlind and to follow us on LinkedIn, simply click here.

For further information, please contact:
Media Contact:
Sukanya Dasgupta
Sukanya.dasgupta@colliers.com
+91-8826377335
Associate Director and Head, Marketing & Communications,
Colliers International India, Colliers International India

 

 

 

More News by PR Newswire India

BigRock Announces Black Friday Sale with up to 58% OFF on Web Hosting, Domains and more

HostGator India Announces Black Friday & Cyber Monday Discounts on Web Hosting, Domains, Email Hosting and More

Media Alert: Kimpton Maa-Lai Bangkok launches the first in Asia tactile hotel reviews

European Medicines Agency Validates Application for Tepotinib for the Treatment of Advanced NSCLC with METex14 Skipping Alterations

Haoma Medica Completes First-in-Human Trial for NaQuinate, a Novel Treatment in Development for Osteoporosis

Successive Technologies Appraised at CMMI Level 3

Papuan Pastor Questions BBC Reports on Indonesian Palm Oil Company Korindo

Sony Music Brazil launches new programme to boost digital transformation in the Brazilian music industry

'Great Place to Work® India' institute recognizes HashedIn as India's Best Workplaces in IT & IT-BPM 2020

Simplilearn Launches SkillUp Program for Tech Professionals

AstraZeneca's signs MoU with Indian Diabetes Research Society (RSSDI) to empower 1 Crore Indian Diabetic patients by 2023

Xinhua Silk Road: Red Xifeng debuts at NEXT Summit (Sky 2020), spreading Chinese liquor culture through cooperation

Glenmark Pharmaceuticals secures its position in the prestigious Dow Jones Sustainability Emerging Markets Index for the third year in a row

Peak performance as Chengdu cleans up with park city vision

ResellerClub offers Black Friday Deals of up to 60% off on Web Hosting & Domains

Tuxera First to Bring Network Bandwidth-Saving SMB Compression Feature to Linux Environments

Autotech Co Hong Kong Limited Completes Two-Year Autonomous Research Project

Eightfold AI Raises $125M Series D Funding Round to Provide the Right Career for Everyone in the World

Statement from XTX Markets: fraudulent company claiming to be affiliated with XTX Markets

Azure Databricks Achieves FedRAMP High Authorization on Microsoft Azure Government (MAG)

Frost & Sullivan Examines 8 Strategic Imperatives for Growth in a Post-COVID World

Sirtex Medical and China Grand Pharmaceutical announce SIR-Spheres® Y-90 resin microspheres milestone

5 Ways to Combat Fraud During the Holidays

QS release annual list of Asia's best universities

Home relocation services see more takers in WFH world

Agora Powers Innovative Virtual Experiences Beyond Video Conferencing

Frost & Sullivan Reveals Four Key Areas Driving Growth of the Global Gigabit Ethernet Testing Market

Habanos, S.A. Has Presented the World Premiere Of H. Upmann Connossieur No.2 in Berlin

Virtual Events Platform Airmeet Launches Multi-Track Event Format, Good for Mega-Conferences with Exhibition Booths

GEP Wins Top Honors at Asia Pacific's Prestigious Procurement Success Awards

LONGi supplies 273MW of its solar modules for Southeast Asia's largest solar plant, Phase I of the Xuan Thien Ea Sup Project in Dak Lak, Vietnam

Clarivate Pledges Support for the Women's Empowerment Principles

Managing strategic risk for global companies

SoftIron's Open Source-Based HyperDrive® Storage Solution Verified Veeam Ready

Kavalan Launches Limited Edition 'Artist Series'

Global healthcare experts concerned over rising environmental toxicity and its impact on maternal health in low- and middle-income group countries, including India

The Himalaya Drug Company Introduces Q-DEE Range of Mouth Dissolving Tablets for Immunity and Cramps

Frost & Sullivan awards Digital14 'Company of the Year' in the United Arab Emirates cybersecurity services industry

D-Link Smart Home Products Acquire Taiwan Excellence Award

QAD Adaptive ERP 2020.1 Achieves Veracode Verified Standard Status

Future of digital payments - What's next for India's Digital Space: Lyra Network

Hon'ble Education Minister, Shri Ramesh Pokhriyal 'Nishank' launches various initiatives of Sri Aurobindo Society and HDFC Bank

2020 Global Terrorism Index: Deaths from terrorism reach five-year low, but new risks emerge

Deepak Nitrite ranked and recognized by Forbes Asia as Best Under Billion Top 200

Hiring & Exit Trends Making a Healthy Return to Pre-COVID levels: A data-driven perspective - PeopleStrong

ZTE and GSMA Intelligence Release White Paper on Green 5G - 5G Energy Efficiencies, Green is the New Black

She one of Asia's Top 30 Under 30 and one of Top 30 Women Transforming India. Meet UTS alum Madhavi Shankar.

MedAlliance announces successful completion of enrolment in ISABELLA clinical trial for the treatment of failing AV fistulas in hemodialysis patients

SW China's Chengdu to host event on international supply chain innovation

Cision's New Analytics Dashboards and Interactive Reports Make It Faster and Easier to Demonstrate the Real Business Impact of Earned Media

Adjust Joins Adobe Exchange Partner Program to Enhance App Marketing Measurement, Fraud Prevention and Reporting for Digital Advertisers

Impartner Announces Live 3D Virtual Summit Featuring Top Channel Analysts Jay McBain and Maria Chien

Frost & Sullivan Inspects the Growth Trajectory of Solar PVs Over the Next Decade

ViewSonic Unveils vTouch to Facilitate Multi Touch for macOS

Empire State Realty Trust Achieves GRESB 5 Star Rating in First Year of Participation

Advanced Water Purification Technologies Promise to Deliver Clean and Safe Water to the Global Population

PwC Actuarial Services Hails Aon's PathWise® Platform for IFRS 17 Reporting

STRATACACHE Hires Digital Signage and Retail Veteran to Spearhead Scala Business Development in Canada

The cost of one dose of the Sputnik V vaccine will be less than $10 for international markets

FARO® Launches Latest Vantage Laser Tracker 6DoF Probe

World's Airports And Leading Airlines Join CommonTrust Network And Begin Roll-out Of CommonPass In December In Support Of Safer Border Reopening

Absolut and Beatport Launch NYE 2020 - a 20+ Hour, 15-city, Global New Year's Eve Live Stream Party to #DanceAway2020

Second interim analysis of clinical trial data showed a 91.4% efficacy for the Sputnik V vaccine on day 28 after the first dose; vaccine efficacy is over 95% 42 days after the first dose

Surge in Global Demand for Personal Mobility Brings New Momentum to Two-wheeler Industry, Says Frost & Sullivan

Frost & Sullivan Presents 5 Technology Growth Opportunities in Sensors and Automation for 2021

Signature Event By Cosmoprof India, A Niche B2B Show For The Beauty Industry, To Be Held On 22-23 February 2021 In Mumbai

Genesys Named a Leader in the Gartner 2020 Magic Quadrant for Contact Center as a Service

ANMI kickstarts 'Investor Awareness Week-2020' under the aegis of SEBI

XCMG launches X-GSS at Bauma China 2020, shows how to go digital in machinery manufacturing

Teachings of Guru Nanak are timeless and are more relevant in today's scenario says spiritual guru Sri Sri Ravi Shankar

Freelance on Demand: Rozgaar India to help Businesses adjust to changing times

SHIELD Announces DeviceSHIELD to Protect Small Businesses from Cyber Fraud During the COVID-19 Pandemic

INSIGHTEC Announces MR-guided Focused Ultrasound to Treat Essential Tremor Received Funding by National Health Service (NHS) England

Smytten - India's largest premium product trial platform, launches their new brand campaign: #BeSomethingNew

Atos awarded with the best CSR project for environment and sustainability in India

Crayon Data's Relevance Quotient Report 2020 Explains the Trends and Patterns of Personalized Banking

Philippines Launches New International Investment Promotion Brand Highlighting Its "Make It Work" Potential

Sinopec kickstarts extensive research on CO2 emissions peak and carbon neutral

HGC honoured with Best OTT Partnership Award

World Leaders and Millions of Citizens Call for Peace at Third Online Rally of Hope

New Centre for Medicines Research (CMR) Clinical Factbook From Clarivate Highlights Increasing Cost and Complexity of Phase II Trials

NPL and Cambridge Quantum Computing (CQC) collaborate in quantum computing

Syngenta Crop Protection announces launch of Spiropidion: a new insecticide active ingredient

Oslo, Los Angeles, Mexico City, Budapest Commit to Clean Construction, Moving the Industry Towards a Sustainable Future

Cobwebs' Threat Intelligence Solutions

American Wave Machines, Inc. Announces Two PerfectSwell® Projects

Yili's dollar bond debut wins the highest international credit rating

Which Windows Internet Security Software protects you best and which slows down your workstation

PR Newswire Publishes 2020 Tech Media Pitching Kit

Singapore-based startup Plano Wins World's Most Innovative HealthTech Startup 2020 Award

Longitude Prize launches AMR Voices: Stories from the frontlines of antibiotic resistance during Covid-19

Clarivate Strengthens IP Offering in Mainland China with New Domain Registrar License

Venture Global LNG Awards KBR EPC Contract for Plaquemines LNG Export Facility

Texas Cardiac Arrhythmia Institute at St. David's Medical Center to host virtual international symposium on complex cardiac arrhythmias

Volvo Financial Services Realigns Asia Pacific Organization to Better Serve Customers

Transforming the Future of Digital Health Management - Enjoy a More Fulfilling Life With Zepp

Philip Wong Joins Vasayo as President of Greater China Region

Enterprise Holdings Pledges $120 Million to Advance Social and Racial Equity and Expand the Fight Against Hunger

Tony Blair Institute and Oracle Launch Africa Vaccine Management in the Cloud

GemVax & KAEL reports further positive data from GV1001 Phase II Alzheimer's Disease trial

Xinhua Silk Road: Wuliangye joins Chinese business leaders to promote digital productivity in Asia Pacific

Fresenius Kabi and ASPEN partner for an expert interview series on omega-3 fatty acid containing parenteral nutrition

HarperCollins India is delighted to announce the acquisition of two new books by bestselling author, Preeti Shenoy

2020 TADS Awards Winners Announced At "TADS AWARDS GALA 2020" Presentation Ceremony Hosted in Hong Kong

CDNetworks Releases State of the Web Security for H1 2020: Web Application Attacks Boosted Over 800%

Recently published data on Favipiravir as treatment for mild to moderate COVID-19 demonstrates significant improvement in time to clinical cure

Zentiva Continues Its Planet-Z Program For A Healthier Planet By Planting 4,500 Trees In Portugal

Frost & Sullivan Recognizes Menlo Security as a Growth and Innovation Leader in the Asia-Pacific Web Security Market

Godrej Interio launches essential range, ushering festivities in India

Zymo Research Receives CE IVD Mark for its Quick-DNA/RNAâ„¢ Viral MagBead Kit

Indira IVF is now in 93 centres across India

Creation of a research partnership between Pierre Fabre and Y-Biologics for the development of new immunotherapies based on monoclonal antibodies

GCash overtakes popular brands in local app rankings

G20 Riyadh Summit: Release of Leaders' Declaration

CGTN: China calls for more inclusive development in post-COVID world

Family Photo from Today's Opening Session of the G20 Riyadh Summit

OPENING REMARKS: G20 Riyadh Summit

GAC MOTOR Lands in Chile With Its GS4, GS3, and GA4, building up strength in South America and Accelerating Global Expansion

 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
INDIA WORLD ASIA
Shah positive about resumption of mining...
7 alleged Maoists surrender before polic...
Our goal is to establish Gandhi's Ram Ra...
Educational institutions to remain close...
Cartel TikTok: Narcos post guns, drugs a...
Man held for shooting friend in Gurugram...
More...    
 
 Top Stories
Need to work on rotating the strike... 
Goa looking for first win of the se... 
PM to interact with more teams of C... 
Shah positive about resumption of m... 
Khattar could have called me up on ... 
Odisha Assembly adjourned sine die ... 
Team breathed a sigh of relief afte... 
Rohit Saraf: Look forward to everyt...