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Top 8 Indian cities to add 10 million sq ft data centre space in next 2-3 years

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Top 8 Indian cities to add 10 million sq ft data centre space in next 2-3 years

Top 8 Indian cities are expected to add around 10 million sq ft data center space in the next 2-3 years aided by data localization norms and the massive digital push initiated by the Covid-19 pandemic, said an ANAROCK Property Consultants report.

Currently, data centres in India’s top 8 cities occupy 7.5 million sq ft space. The key cities leading demand for data centres include Mumbai, Chennai, Bengaluru and Hyderabad, among others. The demand resulted post the pandemic is expected to be lucrative for this segment fetching annual rental yield of 10-14%.

“The pandemic has been a massive catalyst for digital adoption across the spectrum. Work-from-home (WFH) compulsions, online education, video-based medical consultations, a huge increase in ecommerce and business-related video conferencing and webinars are increasing the demand for data centres,” said Shobhit Agarwal, MD & CEO, ANAROCK Capital.

Immediately after India went into a lockdown mode due to COVID-19, there was a 25-35% increase in data centre capacity usage as companies began to overhaul their digital infrastructure to deal with the new work environment.”

“Furthermore, the government’s move to make data localisation mandatory ensures a promising future for data centres in the country,” Agarwal said.

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