APPD Market Report Article


March 16, 2023

Dr Samantak Das, Chief Economist and Head of Research & REIS, India


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Steady growth in enterprise demand

  • During 2H22, 9MW of absorption was recorded, a 21% increase over 1H22 levels.
  • Cloud service providers, fintech and e-commerce players accounted for the higher demand.

Supply ramps up as new players increase capacity

  • Capitaland acquired a 4-acre land in the Ambattur area to develop the DC campus with a planned capacity of 55MW.
  • Techno Electric and Engineering Ltd, a domestic player, plans to make its 24MW data centre operational by September 2023.

Land banking activity increases

  • Land prices have increased significantly, with new entrants scouting for land parcels.
  • New regions are being explored by colocation players.

Outlook: CSP expansion to drive demand growth

  • Cloud service providers (CSPs) are expected to expand their footprint to establish new availability zones (AZs) in the country.
  • Power availability is expected to influence site selection in the Ambattur and Siruseri regions.

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

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