APPD Market Report Article


August 25, 2022

Christopher Street, Head of Data Centres, Asia Pacific



MRC Rising

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.

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

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