Chennai: Chennai is expected to see second highest capacity addition due to its advantages of cable landing stations and low development costs according to JLL’s H1 2020 ‘re(Imagine) Data Centers Running India’s digital economy’ report.
The city is expected to attract more players due to low land and construction cost. Further, the city has lowest vacancy of six per cent due to limited supply and increasing demand.
While Mumbai is expected to see highest capacity, Chennai will be the next frontier for growth of cloud customers and will command higher rentals due to demand from enterprises according to the report.
It said Ambattur and Siruseri in Chennai continue to be growth districts for data center.
“Growth in the sector will be further powered by colocation sites which, via, lower upfront costs, heightened data security, uninterrupted services and scalability will, further, influence investors to reimagine the potential of India’s data canter space. Chennai is all set to become the second major hub for data centres in India. The primary reason for this trend is the submarine cable landing in Chennai and the city’s geographical proximity to key Asian cities,” said Siva Krishnan, managing director – Chennai, JLL.