Telangana and Maharashtra are leading in the growing demand for data centres, reports Deccan Chronicle. Jharkhand and Chhattisgarh follow them with the help of policies formulated in the IT-ITeS sector to tap quickly into the growing demand for data centres.

States are coming up with several incentive schemes like single-window clearance systems to encourage investors. According to a CBRE South Asia Pvt. Ltd report, India is seeing the growth of data centres in major cities of Mumbai, Chennai, Bengaluru and Hyderabad. Most of the demand for data centres in India is generated by businesses relying on internet communication and data storage.

Among cities, Mumbai tops the highest number of data centre operators in the country. Bengaluru and NCR follow it. The demand for data centres is spread across different types of businesses and is increasing due to the adoption of cloud computing, Internet of Things (IoT) and big data.

With growing dependency on internet services and advanced technologies for data management, there is an additional incentive for high-quality data centres.

The report also notes that India, despite having immense potential to become a data centre hub in the Asia Pacific region, has several hurdles in reaching there. Various states are yet to formulate policies for this segment. Furthermore, a very complex approval process for the acquisition of infrastructure and environmental clearances exists, which needs to be simplified.

Anshuman Magazine, Chairman, India and South-East Asia, CBRE, said, “India holds massive potential to become the ‘next destination’ for data centres, driven by demand created by businesses. Overall, the DC market outlook looks positive on the back of the availability of land and a skilled talent pool, along with a vast, untapped market.

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