Market Trends of Mumbai Data Center Industry
Smartphones To Drive the Market Growth
- The growing number of internet users, more significant usage of social media, increased smartphone penetration, increased acceptance of cloud services, and the necessity for organizations to shift from server room environments to data centers are the primary drivers of the data center industry.
- Organizations and institutions with high data volumes saw data centers as needed or motivated by compliance obligations. As broadband and mobile internet penetration increased at the client end, many services that utilized digital connectivity emerged, giving rise to the globe. Even among enterprises, the rising adoption of Cloud, AI, IoT, and automation technologies drives demand for data centers. Most public and private enterprises rely on dependable, always-on data center operations.
- India now has the world's highest mobile data consumption rate, with data consumption of 18 gigabytes per data subscriber each month. Wireless mobile data traffic in the country increased by 31% last year to 253 exabytes, owing to citizens' increased use of smart gadgets, leading to a significant surge in data usage. According to the report by TRAI, with more than 35 million mobile subscribers in Mumbai, the country's financial capital, which accounts for over half of the present data center capacity, is scheduled to add 300 MW by fiscal 2025.
- According to the report by JLL, Mumbai's data center capacity is likely to grow 2.65 times by 2023; the advancement of technology from 4G to 5G and the increase of mobile subscribers annually will drive the market during the forecast period.
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Tier 3 is Expected to Hold Significant Share of Market
- A hyperscale data center is a mission-critical facility capable of supporting resilient and scalable workloads. Hyperscale data centers are frequently linked with large corporations with extensive data processing and storage needs. Hyperscale data centers can house thousands of servers connected to the internet at fast speeds, triggering demand for Tier 3 data centers in the Mumbai Data center market.
- On May 2022, NTT Ltd. in India announced the opening of its first hyperscale data center facility, NAV1A, in Navi Mumbai. This brings NTT's data center presence in the country to 12 facilities, totaling more than 2.5 million square feet (232,258 m2) and 220 MW of facility power, solidifying its position as India's market leader. This announcement comes on the heels of opening a new data center on the company's Chandivali property. These are part of the company's anticipated USD 2 billion investment in 2020 to scale its infrastructure capacity to continue implementing its One NTT goal.
- On January 2023, Google secured a contract for an eight-story data center in Navi Mumbai. The search engine giant has signed a lease for a 381,000 square-foot (35,400 square meters) data center spread out in Navi Mumbai, and construction is expected to begin soon with a completion date of 2025. with this, this will be one of the biggest Hyperscale data centers in Navi Mumbai.
- January 2022, Yondr Group, a global pioneer in developing, owning, and operating hyperscale data centers, announced a strategic joint venture relationship with Everstone Group (Everstone). The first plant, located in the Mumbai Metropolitan Region and for which land and power have already been obtained, would supply 30MW by 2023 and 60MW of IT capacity when entirely constructed. With an initial capitalization of USD 1 billion, the joint venture will assist hyperscale clients and service the fast-rising Indian industry, which is expected to exceed USD 4.5 billion by 2025. The funds would be utilized to fund the construction and operation of multi-locational hyperscale data center businesses in key Indian areas.
- Digital Edge (Singapore) Holdings, the National Investment and Infrastructure Fund (NIIF), and AGP DC InvestCo (AGP) have formed a joint venture to build a pan-India portfolio of hyperscale data centers. The facilities will be known as Digital Edge DC, serving the country's continuing digital transformation and India's booming cloud economy. The partnership's first project is a $2 billion investment to build a 300MW hyperscale facility, one of the country's largest data centers. This will be built on a 47-acre property between Thane and Navi Mumbai, the country's largest data center hub with convenient access to infrastructure such as power and fiber connectivity.
- With data usage on the cloud, Mumbai will undergo a rapid digital transformation due to adopting cloud-based infrastructure, data localization, and other government initiatives, with highly reliable and unrivaled scalability hyperscale data centers. Mumbai is investing heavily in data center infrastructure as data usage grows.
