India's data centre capacity expected to triple by 2025
India’s data centre market is expected to exhibit some of the most robust growth opportunities in the world. Over the next five years, the industry expected to expand its capacity from 375 MW in the first half of 2020 to 1,078 MW by 2025.
According to the findings of a new report by Jones Lang LaSalle (JLL), an American real estate firm and India's largest professional services firm specialising in the real estate sector, the Indian data centre market represents an investment opportunity of more than US$4.9bn.
The report, (re)imagine Data Centres Running India’s Digital Economy was released earlier this week and finds that new data protection laws, the growth of hybrid cloud and colocation data centres, and growing adoption of 5G, edge computing and the internet of things (IoT) will be a source of sustained growth across the region.
“India’s data centre market will outperform over the next five years, supported by a combination of growing digital economy, increased investor interest and stable long-term returns. Growth in the sector will be further powered by colocation sites which, via, lower upfront costs, heightened data security, uninterrupted services and scalability will, further, influence investors to reimagine the potential of India’s data centre space,” commented .
“The 703 MW expected capacity additions is translating to 9.3mn sq. ft. of space, which will open up greenfield investments for real estate developers and investors to fuel the future development of the sector.”
India's digital economy has been heavily reliant on the data centre industry over the past several months of lockdown - Image courtesy of JLL
These findings come off of the back of an exceptionally strong first half of the year for the Indian data centre market. As a nationwide lockdown drove online traffic to record highs, from an average of 270 petabytes (PB) to 308 PB during the week of March 22nd, which represents a 14% rise in daily data consumption during lockdown. The data centre industry, particularly in Mumbai and Chennai , has been instrumental in powering India's digital economy throughout the pandemic so far. "Data centres are India’s backstage warriors, which enable seamless and remote working-and-living. The dependence of several industries on digital infrastructure has partially helped mitigate the impact of the lockdown," added Nair. Even beyond the COVID-19 pandemic, JLL sees the ongoing digitalisation of India's economy - driven by industries like ecommerce and online education - to increasingly place data centres at the forefront of the country's economic ambitions.
“Powered by the transition to work from home arrangements during lockdown, the country’s data centre industry became the backbone of the digital economy and ensured a level of business continuity and sustained large portions of the country’s education system,” said . “Given shifts in the economy, we will continue to see data consumption increase manifold for the foreseeable future.”
LCL acquires ENGIE Solutions data centre in Gembloux
The data centre company LCL has announced today that it has acquired the ENGIE solutions data centre in Gembloux, Belgium through the acquisition of Cofely data solutions. The new facility, called Wallonia One, is the company’s first facility in Wallonia. As part of the agreement, LCL will take over the management of the facility’s employees as well as the data centre itself. The value of the acquisition is undisclosed.
LCL says that Wallonia One is its fifth data centre in the Belgian market and its second acquisition, after purchasing the Atos data centre in Huizingen in April last year. Laurens van Reijen, CEO of LCL, said: “With this fifth data centre, we are increasing our presence on the market. Gembloux is located in the heart of the Walloon economy. As a result, LCL Wallonia One offers excellent connection possibilities for the business sites and parks throughout Wallonia.
“Thanks to our other strategic sites located in the four corners of the Brussels and Antwerp peripheries, we can ensure that any company will have close links with other regions in our country”, van Reijen said.
Four employees under a fixed contract with Cofely Data Solutions will be joining the LCL team for the acquisition. Remaining part of the LCL Wallonia One, the employees will be under the leadership of their current manager, Nicolas Coppée, LCL said.
“We warmly welcome our four new colleagues and their support will be effectively integrated,” said Laurens van Reijen. “LCL is still strongly driven by service and quality. We intend not only to build synergies between our five data centres but also to introduce some innovations. Our current team of 37 employees is specialised in data centre services. So this is a win-win-win operation: for the customers of data centres, for ENGIE Solutions, and for LCL”.
Wallonia One’s “solar park”
LCL also says that the Wallonia One data centre features a solar park to provide power for the facility. The park includes 2,000 photovoltaic panels which generate 1MW of electricity, LCL claims. The centre also has a low Power Usage Effectiveness (PUE) rating of 1.25, in line with the company’s sustainability and efficiency objectives.
Committed to making all of its data centres carbon-neutral by 2030, LCL has created the “Climate Neutral Data Centre Pact” across Europe, which consists of 24 companies and 17 associations.
In addition to Wallonia One, LCL and ENGIE Solutions have also concluded a collaboration agreement, thus enabling ENGIE Solutions to build new data centres for LCL. There are also plans for ENGIE Solutions to advise LCL on energy efficiency, given ENGIE’s experience in such projects.