APPD Market Report Article

Chennai

August 25, 2022

Christopher Street, Head of Data Centres, Asia Pacific

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MRC Rising

Demand from hyperscale cloud players increases

  • Cloud players are steadily increasing their footprint with new pre-commitments being inked.
  • Demand from enterprise and wholesale segments have provided steady space take-up during the first half of the year.

Supply in line with delivery commitments

  • Colocation operators have been scouting for land parcels aggressively.
  • Operators calibrated supply in line with cloud demand which has been picking up.

Data centre policy attracts operators to establish footprint

  • Equinix invested over USD 9 million to acquire a land parcel of around 5.5 acres in Chennai on a long-term leasehold basis. The land parcel is located in the Siruseri area, which is known as the IT Corridor of Chennai, with large and upcoming IT parks and well-established telecom networks.
  • The state government signed memorandums of understanding (MoUs) with Singapore-based CapitaLand and WebWerks for setting up data centres in Ambattur.

Outlook: Emergence of alternate DC hub for cloud players

  • The city has two DC hubs with more than 20 km of distance between them. Hence the emergence of a new DC zone is possible with cloud players adopting a three-site strategy.
  • The new cable landing station is expected to influence the DC hubs in the city.

Note: Chennai Data Centres refers to Chennai's overall data centre market.

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