News release

Data Centre industry in India to cross 1.3 GW capacity, grow 2.4X by 2024: JLL

USD 5.5 billion investments are expected for capacity additions by 2024

April 27, 2022

Arundhati Bakshi Dighe

91 98193 90900

Mumbai, 27 April 2021: Capacity expansion by existing and new players in the Data Centre (DC) industry is expected to result in an additional capacity of 804 MW during 2022-2024, translating to 34% CAGR for the period, according to JLL’s report India’s Data Centre report card 2021. A notable feature of this supply growth has been that a large share of it has been pre-committed by hyperscale and is expected to become operational in the next three years.

Mumbai and Chennai to lead in capacity expansion

Mumbai and Chennai are expected to witness higher growth owing to their infrastructure advantages. As a result, both cities will account for 68% of the total capacity in 2024. The addition of a new cable landing that would connect these cities, going forward, would also lead to higher bandwidth. However, landlocked locations like NCR-Delhi would also see growth in capacity addition due to government-led digital initiatives and data demand. Proactive state policies, meanwhile, are creating Hyderabad into an emerging location for hyperscale cloud players.

Real Estate demand to the tune of 9.7 million sq. ft is expected 

The Indian DC industry is expected to add 804 MW capacity from 2022-to 2024. This would mean the creation of 9.7 million sq ft of real estate space for this new capacity across India’s leading cities. Since DC construction is driven by the design specifications of each operator, the nature of this capacity addition would differ across DC hubs in the country. However, DC hubs in India are most co competitive in terms of land, construction, mechanical, electrical and plumbing costs.

“Owing to its high share of capacity addition, Mumbai is expected to create demand for 6.18 million sq ft, going forward. The comparatively high land cost of the city vis-à-vis other DC hubs will lead to a higher outlay of USD 3.3 billion for setting up data centres in the city. As Chennai has similar advantages, it would follow with 2.03 million sq ft of real estate space addition at an investment of USD 1 billion,” said Rachit Mohan, Head, Data Centre Advisory, India, JLL

The strong demand growth has been matched by a supply addition of 119 MW during the year, registering a growth of 23% over 2020. Mumbai, Pune, and Chennai together accounted for 83% of the total supply during 2021. DC operators have been following a land banking strategy to provide scalable and seamless options for hyperscale cloud players. In the Mumbai region, the Navi-Mumbai suburb has emerged as a preferred location due to its high-capacity power station, developed territorial cable connectivity, and availability of land at a lower cost than the mainland. Hyperscale cloud players have been exploring various availability zones to ensure seamless operations. The expected growth in demand is likely to lead to strong capacity addition during 2022- 2024.

The year that was

The demand momentum for the Data Centres (DC) that picked up during 2020 has gained pace, with an estimated absorption of 116 MW during 2021—a 14% Year-on- Year (Y-o-Y) Hyperscale cloud players accounted for 69% of this absorption, as pre-committed capacities were delivered during the year. Hyperscale cloud allows businesses to expand their IT infrastructure based on its demand. Mumbai accounted for 53% of the total absorption as the preferred location of leading cloud players. The sector’s three basic conditions of power supply, connectivity and customer base are amply provided by the city, making it the default location of DC operators. Pune accounted for 21% of the total absorption, followed by Chennai at 15%. The need to diversify across regions, as well as the emergence of strategic locations and favorable regulatory policies, is leading to an expansion trend across India’s key DC hubs.

“Demand picked up in the second half of 2021 in India’s key markets, including Mumbai. In fact, the total absorption in the second half of the year increased by 49% over the first half. In Mumbai alone, demand increased by a strong 71% in the second half of 2021, reaching 62 MW for the year. This demand was led primarily by cloud players and BFSI firms expanding their footprints. The DC market is standing at the threshold of high growth as hyper-scale cloud players aggressively expand their capacities for a slice of the growth pie. The expected boom in data consumption with the convergence of various technologies has also led to various players building up capacities,” Dr. Samantak Das, Chief Economist and Head of Research & REIS at JLL India

“This high growth is currently being matched by ambitious growth plans of colocation DC operators, leading to a capacity addition of 119 MW during the year. The untapped potential from other sectors like agriculture, logistics, finance and automotive also promises a high growth trajectory for data usage in the years ahead,” he added.

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 98,000 as of December 31, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit

JLL is India’s premier and largest professional services firm specializing in real estate. The Firm has grown from strength to strength in India for the past two decades. JLL India has an extensive presence across 10 major cities (Mumbai, Delhi NCR, Bengaluru, Pune, Chennai, Hyderabad, Kolkata, Ahmedabad, Kochi, and Coimbatore) and over 130 tier-II and III markets with a cumulative strength of close to 12,000 professionals. The Firm provides investors, developers, local corporates and multinational companies with a comprehensive range of services. These include leasing, capital markets, research & advisory, transaction management, project development, facility management and property & asset management. These services cover various asset classes such as commercial, industrial, warehouse and logistics, data centers, residential, retail, hospitality, healthcare, senior living, and education. For further information, please visit