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South Indian cities - Chennai, Bengaluru, Hyderabad - to shape global data center landscape
Significant investments, strategic government incentives, diverse occupier base alongside competitive pricing, advanced infrastructure, additional service offerings make these cities attractive destinations
Industry leaders have predicted South Indian cities - Chennai, Bengaluru, and Hyderabad - will experience substantial growth in data centre establishment due to favourable conditions.
According to a Colliers India report, South India will evolve as a global data centre landscape, with a projected growth of 65 per cent in capacity by 2030.
“Bengaluru, Chennai, and Hyderabad are prominent technology hubs with a high concentration of IT and software companies. This creates a strong demand for data centre services to support IT infrastructure needs,” said Siddarth Reddy, VP, Corporate Strategy and Global Expansion at CtrlS Datacenters.
RE resources
“We operate data centres in all these markets because of the availability of good renewable energy resources, which are increasingly used to power data centres, making them more sustainable and cost-effective. Good connectivity to major international submarine cable systems and talent pool availability also helps,” he added.
In Chennai, CtrlS has a data centre campus in Ambattur industrial area, with a cumulative IT load capacity of 72 MW, built with an investment of ?4,000 crore. The company operates one AI-ready data centre in Bengaluru and is exploring expanding to other locations in the city such as Electronics City, Whitefield, and KIADB Aerospace Park.
Capacity doubling
“We foresee that the Bengaluru market will see data centre capacity doubling in the next 2-3 years,” Reddy added that Hyderabad may become one of India’s largest data centre markets within the next 6-7 years. “The state government’s policy framework, industry incentives, presence of industrial parks, availability of talent pool, and a conducive data centre ecosystem makes Hyderabad an ideal location for expansion,” said the VP, adding that the company operates three data centres in the city and will create a new hyperscale campus in the Chandanvelly area spanning across 40 acres.
The Colliers India report stated that while the combined installed data centre capacity in Chennai, Bangalore, and Hyderabad currently stands at approximately 200 MW, 190 MW is still under construction, with an additional 170 MW planned. These developments will increase the total capacity by 80 per cent over the next few years.
Chennai capacity
Chennai currently has an installed capacity of 87 MW, with 156 MW under construction and 104 MW planned. Bengaluru has an installed capacity of 79 MW, with 10 MW under construction and 26 MW in the planning stages. Hyderabad, on the other hand, has an installed capacity of 47 MW, with 20 MW under construction and 38 MW planned.
The monthly recurring charges for data centres in South India range between?6,650–8,500 per kW per month according to the usage, offering value for money given the advanced infrastructure and extensive range of services provided. “This competitive landscape ensures continuous upgrades and enhancements by service providers, meeting the evolving needs of occupiers,” says the Colliers India report.
“These cities have a dynamic and varied occupier geography. To maximise their operations, occupiers seek more services like managed services, edge computing, security solutions, and disaster recovery. Bengaluru’s robust IT ecosystem truly stands out,” said Piyush Somani, Founder, CMD and CEO of ESDS Software Solution Ltd and President of CCICI.
Large pool of IT professionals
He added that cities like Bengaluru are known for their large pool of IT professionals, making recruiting skilled people for data centre operations easier. Emphasising Bengaluru’s promising conditions, he added, “There is a significant investment in infrastructure that improves power supply, transportation, and digital infrastructure to make these cities conducive to data centre operations. Bengaluru already has a sizable infrastructure, so we established our data centre there in 2019.”
Somani mentioned ESDS’s advanced Bengaluru architecture provides flexibility for the centre’s cloud’s customer needs by supporting multiple 25 Gbps links to hosts and a backbone on multiple 100 Gbps links. The founder also stated that the availability of many ISPs improves inter-DC connectivity, customer branch-to-data centre communication, and access to the ESDS Cloud.
“Cities like Chennai are closer to multiple international submarine cables, which provide robust connectivity to global networks. Therefore, we are planning to expand our data centre operations there as well.”
Report highlights
The outlook for South India’s data centre market in the three cities is positive, highlights the report, adding that the combination of strategic location, robust government support, and technological advancements positions these cities as pivotal players in the global data centre industry.
Demand for data centres is expected to rise continually, driven by increasing cloud service adoption, digital transformation initiatives by enterprises, and the advent of new technologies such as 5G and IoT.
South India’s data centre market, particularly the three cities, is set for substantial growth, supported by significant investments, strategic government incentives, and a diverse occupier base. “The competitive pricing, advanced infrastructure, and additional service offerings make these cities attractive destinations for data centre investments. As South India continues to develop its digital infrastructure, it will play a pivotal role in the global data centre market, offering immense opportunities for investors and occupiers alike,” read the report.