South India to see 65% growth in its global data centre biz by 2030

Bengaluru: South India's data centre market is poised to play a pivotal role in the global data centre landscape with capacity projected to grow 65 per cent by 2030, according to professional services and investment management company Colliers. Chennai, Bengaluru, and Hyderabad are at the forefront of this rise. 

Bengaluru currently has an installed capacity of 79 MegaWatts (MW), with 10 MW under construction and 26 MW in the planning stages. 

The combined installed data centre capacity in Chennai, Bengaluru, and Hyderabad stands at approximately 200 MW with 190 MW currently under construction and an additional 170 MW planned. These developments are expected to increase the total capacity by 80 per cent over the next few years, propelling the region's importance in supporting global digital infrastructure. 

“The anticipated 80 per cent increase in data centre capacity by 2030 across Chennai, Bangalore, and Hyderabad highlights the region's growing strategic importance in the digital infrastructure ecosystem, with sustained government support and continuous infrastructure development, South India is set to become a global data centre hub”, said Swapnil Anil, Executive Director & Head of Advisory Services, Colliers India.

State governments in Tamil Nadu, Karnataka, and Telangana have fostered data centre growth through incentives including subsidies on land acquisition, reduced power tariffs, and tax breaks. The government has also improved ease of doing business through simplified regulatory frameworks and expedited approval processes.

Recent data with Colliers shows that banking, financial services and insurance (BFSI) dominates the market, accounting for nearly 35 per cent of total occupancy. IT firms follow with 30 per cent, hyperscalers occupy 20 per cent and other sectors constitute the remaining 15 per cent.

The monthly recurring charges for data centres in South India range between 6,650 – 8,500 INR/kW/month according to the usage, offering a competitive deal according to Colliers. Demand for data centres is expected to rise continually, driven by increasing cloud service adoption, digital transformation initiatives by enterprises, and the advent of new technologies such as 5G and IoT.

Occupiers are increasingly seeking additional services to optimise their operations. These include comprehensive IT management solutions, advanced security measures such as encryption, threat detection, and incident response services, disaster recovery solutions and proximity to end-users to reduce latency.