APPD Market Report Article
Chennai
August 25, 2022
Christopher Street, Head of Data Centres, Asia Pacific
N/A
148
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.

