Chennai Bags a Spot Among The Top 10 Global Data Center’s Markets
Chennai is one of the leading real estate markets in the country today. The rapid infrastructure development and the IT corridor are glorifying the region, thereby escalating the real estate transactions.
The city possesses diverse investment opportunities like a commercial, residential, co-living properties, and many more. Of all these investment options, data centers that fall into commercial properties are leading the markets and driving the city standards into higher strata. Recently, Chennai has bagged a position in the top 10 cities to watch for globally, according to a report by Cushman and Wakefield’s 2021 Global Data Center Market Comparision. The other cities on the list are Nairobi, Stockholm, Cape Town, Moscow, Athens, Abu Dhabi, Santiago, Kuala Lumpur, and Vienna.
The global commercial real estate services firm Cushman and Wakefield have conducted a study that evaluated almost 1,189 Data Centers worldwide to arrive at the report. The firm considered 48 global markets before arriving at the overall Top 10 markets.
Chennai currently holds 12 data centers and is estimated to be of a capacity of approximately 70 MW. According to a report by global real estate consultancy Knight Frank, this is anticipated to grow to a massive degree of 174MW by 2023, more than double in a couple of years.
Reasons for Data Center Boom in Chennai
The prime reason for the data center market boom is the increased digitization pace that increased the various companies’ reliance on data storage spaces. This is attracting heavy investments from the vast players of the industry. Almost investments amounting to Rs.8,300 crores by large companies, namely Yotta Infrastructure of Hiranandani group, HDCI Data center Holdings, and a Singapore-based company, have been made in the last year 2020. The astounding fiber optic connectivity with four undersea cable landing stations is bolstering the establishments.
The large IT offices, hyperscalers, and enterprises are driving the demand for data centers. Ambattur and Siruseri micro markets have evolved as the data center markets with the tech giants like Adani, Netmagic establishments in these areas. Chennai is the closest point in India to South East Asia that ensures good global connectivity. The coastal region holds the scope for the new cable landing stations that best support the data centres.
Promising Chennai Commercial Real Estate
Chennai, the capital city of Tamil Nadu, has emerged as a real estate hotspot due to the IT hub that best buttresses the city’s commercial real estate sector. Chennai has witnessed a 4.5 million sq. ft. of office space absorption in the year 2020 despite the stalling markets due to the pandemic. The upcoming projects like Chennai Metro, the Road Development program, and the International Airport’s up-gradation are anticipated to elevate the city’s commercial real estate status. These projects develop the areas in the vicinity of the projects and increase the connectivity, which is expected to escalate the properties’ worth and scale up the investments. Chennai’s commercial Real Estate hence seems promising.
Bottom Line
Chennai stands at the second position after Mumbai in the Indian Data Center Market. The potential of Chennai to emerge as a data centre hub is best exemplified by the growing investments in the data center market. The developed infrastructure like cable landing stations, IT offices, and industries’ demand for data storage has pushed up the limits to go further and beyond. This has placed the city in the top ten markets to watch for globally. This news brings cheer to the investors in this area and also anticipates an influx of further commercial real estate investments in this city.
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FAQs:
Chennai, the capital of Tamil Nadu, is one of the real estate hotspots of the country. Due to the IT corridor, the real estate has scaled up and is expected to go further due to the upcoming infrastructure projects. So, the city markets are the best place to invest in.
Chennai has featured on a global list of top ten cities to watch for, according to a renowned Real Estate services firm Cushman and Wakefield. So, investing in the data center in Chennai would be one of the best decisions.
The digitization in the economy and the forced shift to the online processes during the pandemic has increased the data storage space’s dependency. This created the demand for the data centers.
The infrastructure development and the connectivity and cable landing stations in the city are the prime reasons for the data center boom in the city. Also, the IT and the e-commerce industry are the biggest consumers supporting the data center establishments.
