Hyderabad to witness demand for data centre space: ANAROCK report

Work-from-home compulsions, online education, video-based medical consultations, ecommerce and business-related video conferencing and webinars are increasing the demand for data centres.
An aerial view of Ganesh procession near historical Charminar in the old city of Hyderabad. (File photo| RVK Rao, EPS)
An aerial view of Ganesh procession near historical Charminar in the old city of Hyderabad. (File photo| RVK Rao, EPS)

HYDERABAD: Hyderabad has been listed among the top eight cities that are predicted to see maximum demand in data centre space, based on a report by the ANAROCK group. The list also includes cities like Mumbai, Bangalore and Chennai.

According to the report, "The government’s efforts to make data localisation mandatory ensures a promising future for data centres in India. Presently, data centres occupy 7.5 mn sqft space in the top eight cities. More than 10 mn. sqft of new space is to be added over the next 2 - 3 years. The Adani Group, Hiranandani Group, Salarpuria Sattva, etc, have massive investment plans for building data centres in India."

Shobhit Agarwal, MD and CEO of ANAROCK Capital, said, "Immediately after India went into lockdown mode due to Covid-19, there was a 25 - 35 per cent increase in data centre capacity usage as companies began to overhaul their digital infrastructure to deal with the new work environment."

"Work-from-home compulsions, online education, video-based medical consultations, ecommerce and business-related video conferencing and webinars are increasing the demand for data centres," he added.

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