Data Centres receive investment worth USD 2.2 Bn in 2021: Knight Frank India
By MYBRANDBOOK
Leading global consultant in India, Knight Frank, in their latest report Investments in Real Estate- trends in private equity investments in India (Q1 2022), reported a significant growth in private equity (PE) investments in data centres in India. Total PE investments in this sector is recorded at USD 2209 Mn in 2021, significantly higher by 259% when compared to investments received in 2016. The sector commanded 26% share of all PE investments received by the real estate sector in India in 2021. Approximately 96% of the total PE investments in data centres since 2011 in India have been made by foreign Investors.
Table 1: Investment in Data Centre (2016 – 2021) in USD Mn
|
Year |
Investment in USD Mn |
|
2016 |
616 |
|
2017 |
-- |
|
2018 |
450 |
|
2019 |
-- |
|
2020 |
396 |
|
2021 |
2,209 |
Source: Knight Frank India Research
Data centre growth in India has been significant over the last 5 years with investments from real estate players as well as from PE funds to set up various categories – from colocation, hyper-scale, managed services to edge data centres, etc. Data centres took second spot in the total investment share in 2021, beating warehousing and residential. While the focus has primarily been on metro and tier 1 cities such as Mumbai, Chennai, Bengaluru, and Hyderabad, other areas such as Pune and Indore have also been of interest to investors. Recorded at USD 851 mn, Mumbai has received the largest cumulative volume of investments since 2011 followed by Bengaluru at USD 427. Delhi received cumulative PE investments of USD235 Mn in Data Centres in the same period.
Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “In India, the current capacity of data centres in relation to the volume of data created is low, which lends scope for creation of more data centres. Going forward, India's growing reliance on digital payments, ever-increasing data consumption, and a surge in e-commerce usage would need enhanced digital infrastructure, making Data Centres a sunrise sector with high investor interest”.
The share of data centre in total PE investments in real estate in India has risen significantly from 2016 to 2021. The total investment in five asset classes – office, residential, retail, warehousing and data centres was recorded at USD 8.4 Billion (8,408 Mn). Of this total share of data centres was recorded at 26% or INR 2.2 Bn (2,209 Mn).
Table: Share of asset class wise PE Investments 2016 – 2021
|
Year |
Office |
Retail |
Warehousing |
Residential |
Data Centres |
|
2016 |
24% |
11% |
2% |
51% |
11% |
|
2017 |
34% |
9% |
29% |
28% |
0% |
|
2018 |
51% |
3% |
24% |
17% |
5% |
|
2019 |
49% |
14% |
27% |
11% |
0% |
|
2020 |
58% |
5% |
20% |
8% |
9% |
|
2021 |
34% |
10% |
16% |
14% |
26% |
Source: Knight Frank India Research
The significant rise of data generation and its consumption across a variety of industries has led to a steep rise in demand for data servers and data centres globally. According to Cloudscene data of 110 countries, as of January 2022, there were 8,347 data centres globally. Of these countries, the top five house more than 50% of the data centres: the United States (33.1%), the UK (5.8%), Germany (5.5%), China (5.4%) and Canada (3.9%). India’s share in the total pie stands at 1.5%.
BREAKING NEWS
TECHNO TRENDS
Legal Battle Over IT Act Intensifies Amid Musk’s India Plans
The outcome of the legal dispute between X Corp and the Indian government c...
Wipro inks 10-year deal with Phoenix Group's ReAssure UK worth
The agreement, executed through Wipro and its 100% subsidiary,...
Centre announces that DPDP Rules nearing Finalisation by April
The government seeks to refine the rules for robust data protection, ensuri...
Home Ministry cracks down on PoS agents in digital arrest scam
Digital arrest scams are a growing cybercrime where victims are coerced or ...
E-Magazine
TECHNOTAINMENT
Hrithik Roshan to endorse RuPay as Brand Ambassador
RuPay is reportedly planning to feature Bollywood superstar Hrithik Rosha
India Today Group launches – AI Pop Stars
Staying true to our industry leadership position in using cutting-edge tech
MOVERS & SHAKERS
TelioLabs ropes in Phaniraj V A as the Group CEO
TelioLabs has announced the onboarding of Phaniraj V A as its new Group CE
Wipro Appoints Amit Kumar as Managing Partner and Global Head
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading technology s
OPEN YOUR EYES
INTERVIEWS
Bolstering its commitment to help build a truly self-reliant B
CP PLUS is dedicated to spreading a sense of security to every corner of In
Autodesk continually pushing the boundaries in the Design and
Autodesk’s vision is of a better world designed and made for all. It inte
HOT PICK
MSI Announces the availability of RTX 50 series of laptops in
MSI, the innovative computing manufacturer in gaming, creator
Nothing Phone (3a) goes on sale today, starting at Rs 19,999
The phone was launched on March 4, featuring a 50MP main, ultra-wide, and t
MAKE IN INDIA BRANDS
ZOHO CORPORATION PVT. LTD.
PDRL - Passenger Drone Research Pvt. Ltd.
INFOSYS TECHNOLOGIES PVT. LTD.
HP INDIA SALES PVT. LTD.
EMINENT CIO'S OF INDIA
ICONS OF INDIA
Icons Of India : Arjun Malhotra
Arjun Malhotra, the Chairman of Magic Software Inc., is widely recogni...
ICONS OF INDIA : SANTHOSH VISWANATHAN
Santhosh Viswanathan is the the Vice President and Managing Director f...
Icons Of India : MUKESH D. AMBANI
Mukesh Dhirubhai Ambani is an Indian businessman and the chairman and ...
PARTNER SPEAKERS
PSU
C-DOT - Center of Development of Telematics
India’s premier research and development center focused on telecommu...
GeM - Government e Marketplace
GeM is to facilitate the procurement of goods and services by various ...
IREDA - Indian Renewable Energy Development Agency Limited
IREDA is a specialized financial institution in India that facilitates...
VIDEOS
Top 25 Brands
Global Indian industry
Indian Tech Talent Excelling The Tech World - Lal Karsanbhai, President & CEO, Emerson
Lal Karsanbhai, President and CEO of Emerson, assumed the leadership i...
Indian Tech Talent Excelling The Tech World - Dheeraj Pandey, CEO, DevRev
Dheeraj Pandey, Co-founder and CEO at DevRev , has a remarkable journe...
Indian Tech Talent Excelling The Tech World - AJAY BANGA, President - World Bank
Ajay Banga is an Indian-born American business executive who currently...
ITFORUM 2025
CMO of the Year
WOMEN LEADERSHIP
IMAGE GALLERY
TRENDS IN TECHNOLOGY
MORE VIDEOS
ADVERTISEMENTS
TECHNOLOGY DISRUPTION
UNICORNS REVOLUTIONISING
of images belongs to the respective copyright holders
