APPD Market Report Article
MumbaiAugust 25, 2022
Christopher Street, Head of Data Centres, Asia Pacific
Absorption grows 250% during first half of 2022
- The migration to colocation by BFSI and hyperscalers has led to a 58 MW absorption in 1H22, which is a 250% increase compared to the same period in 2021.
- Hyperscale cloud players are looking at options only if land, power and fibre paths are secured by colocation operators.
Delivery of pre-commitments influences supply pipeline
- The delivery of pre-commitments has led to a sharp jump in supply in 1H22.
- In line with cloud players making pre-commitments, data centre operators continue to scale up supply, resulting in higher levels of occupancy.
Strategic land banking deals in 1H22
- Equinix announced a USD 86 million investment to build a new data centre in Mumbai. The firm acquired a four-acre land parcel and it will be its third facility in Mumbai.
- Adani Group is expected to purchase two property plots totalling 92 acres in Airoli, Navi-Mumbai for USD 195 million, which are intended for the development of data centres by its subsidiary, AdaniConnex (a partnership between Adani and EdgeConnex, the global colo operator).
Outlook: Robust demand growth to drive supply build-up
- Operators are likely to plan for more ambitious growth, due to the increasing scale and pace of pre-commitments made by cloud players.
- An uptick in self-build activities is anticipated by cloud players, indicating potentially strong demand.