Hyderabad: The Indian data center sector is expected to receive 560 MW (IT Power Load) addition during 2021-23, which will increase the capacity from 447 MW to 1,007 MW. Of this, Hyderabad alone is expected to deliver a 66 MW addition by 2023, representing more than 9.5 per cent of India’s capacity, from the current 30MW level.
Telangana is one of the few states in the country that already has an independent data center policy in 2016. Besides having a large pool of talented manpower, high quality and cost effective infrastructure, the city is centrally located in India, well connected and seismologically safe. All these benefits backed by a dedicated policy make Hyderabad one of the most attractive investment destinations for setting up data centers, experts say.
Of India’s current 447 MW data center capacity, Hyderabad is a seven percent share from December 2020 and stands at 30 MW of power capacity. India’s data center capacity is expected to grow from 447 MW in H2 2020 to 1,007 MW by 2023, which will register a CAGR of 31 percent.
Despite the absence of cable landing stations, Hyderabad is expected to attract data center businesses as well as hypersale cloud providers during 2021-23 due to favorable policy incentives, reliable power supply and economic setup costs, said Sandip Patnaik, Managing Director and Chief Telangana and Andhra Pradesh, JLL.
New projects
Hyderabad today has approximately a 30MW capacity IT power load with a data center built up space of more than seven lakh square feet, mainly concentrated in HITEC City and Budvel. About 80 percent of the built-up space is utilized by 5864 shelves / units. The city is expected to follow an 8MW addition in 2021, followed by 29 MW each for 2022 and 2023, he added.
One of the dominant players in the segment with a 50 percent share in the market, the head office of Hyderabad, CtrlS, is setting up a high-end data center of 2 million square meters in the city, which represents the city’s capabilities and capabilities will add. Flipkart also set up its data center in Hyderabad in April 2019.
Amazon is building large-scale data centers in the city with an investment of 11.624 million (about $ 1.6 billion). While the data center in the town of Meerkhanpet will be spread over 82 883 square meters, the center in the town of Chandanvelly and Hythabad will be 66 003 square meters in size. The data centers are expected to start by 2022-23.
The National Payments Corporation of India (NPCI), the umbrella organization for retail payments and billing systems, will set up its own smart data center 4 on a 500 million investment in Narsingi in Hyderabad.
According to JLL, the built-up area in India by the end of 2020 was about 10 million square meters. Mumbai, Bengaluru, Chennai, Delhi and Hyderabad lead the activity in the data center in the country.
Source: Telangana Today