Chennai Data Center Market Size

Chennai Data Center Market Analysis

The Chennai data center market is valued at 135.6 MW in the current year and is expected to register a CAGR of 22.18% during the forecast period, reaching 566.2 MW by the next five years. A data center is a specific area inside a structure or a collection of designs that house computer systems and related equipment, such as networking and storage systems.

• India's coastal cities like Mumbai and Chennai are leading the pack because of their extensive wet cable environments. Here, you'll find the lowest possible global latencies. Data centers are now a preferred option since they have dependable power sources and landing sites for cable networks that offer excellent global latencies. Chennai is also a popular option for DC colocation firms since it provides an abundance of experienced IT and non-IT resources that are simple to access, along with strong manufacturing bases and lower setup costs. The city is an excellent location for data centers because of its attractive cost structure and ample land supply.
• Moreover, Chennai, an integral part of global undersea cable infrastructure, serves as an alternative data exchange hub for APAC with some natural advantages, like a large pool of available land that can be developed into state-of-the-art data center facilities. The proximity makes it faster-moving compared to other alternatives within this region, making Chennai emerge superior over time. Further, Tamil Nadu has an excellent opportunity to be at the forefront of green energy and sustainability by attracting global cloud and data center players looking for locations that offer both.
• Further, states have created packages of data center-based incentives to attract development and investments in their local regions, taking cues from development agencies globally. These can take the form of tax benefits on land or equipment and provide considerable relief for large-scale development's nine- to ten-figure construction costs. Incentives also provide a business-friendly climate for development, particularly for site acquisition.
• One of the significant challenges that data center operators confront in Delhi is the rising cost of land acquisition, which raises the initial expenditure required to set up a data center. Because most existing availability zones are in formerly industrial areas that are rapidly becoming mainstream, alternatives are limited, and land costs are rising. Furthermore, land titles in the region frequently need to be clarified. This has become a problem for data center operators.
• Furthermore, the COVID-19 outbreak significantly influenced the country, hurting local data center service providers. Again, due to the country's extensive travel ban, many organizations resorted to working from home, dramatically increasing data traffic and putting pressure on the data center's capabilities to prevent downtime.