APPD Market Report Article
Chennai
March 16, 2023Dr Samantak Das, Chief Economist and Head of Research & REIS, India
0.0%
USD 115
MRC
Stable
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.
