India’s colocation data center (DC) industry is expected to double by 2023, according to JLL. The global housing firm expects capacity to increase from 499 megawatts (MW) IT load at H1 2021 to 1008 MW by 2023. This, too, will result in the need for more than five million square feet of buildings, according to JLL. research.
Mumbai and Chennai are expected to lead DC hubs due to guaranteed power supply, underwater cable seals and large consumer markets. Also contributing to the growth will be the ratification of the Framework for Human Data Protection Bill by the joint parliamentary committee, JLL, which believes it will represent a milestone in India’s colocation DC industry, which provides highly IT computing infrastructure. .
“The importance of information about data type has become apparent over the years as all digital transformation is driven by the use of data. The colocation industry is expected to benefit from this legislation due to the need to keep data in the country. The strength of the industry is reflected in the fact that three central laws and four regions have developed data center policies while the other four provinces are in the process of announcing their policies, ”said Rachit Mohan, head of Data Center Advisory – India, Co. -Lead, Office Rental Advisor – Mumbai, JLL.
The Central Government has highlighted the importance of this sector by developing a Data Center Park Policy and the creation of four Data Center Economic Zones aimed at making India a DC hub worldwide. The policy framework aims to provide an “infrastructural” position in the sector that brings long-term credit benefits to domestic and international lenders.
“The growth of the digital economy also requires legislation to protect the rights of Indian consumers by keeping digital information in place. The Reserve Bank of India has issued a directive setting out requirements for local data processing of service providers / mediators / vendors of foreign companies and other entities in the payment ecosystem. The Treasury Administrator has issued various directives for financial coordinators to comply with local operating requirements. The preservation of digital transactions has already led to an increase in demand for data centers in the BFSI sector, “said Samantak Das, chief economist and head of Research & REIS (India), JLL.