PE investment in data centres up sharply at $2.2 billion in 2021

There was a major progress in non-public fairness (PE) investments in knowledge centres in India, in accordance with a report by Knight Frank.

In line with the report titled ‘Investments in Actual Property – traits in non-public fairness investments in India (Q1 2022),’ PE investments within the sector stood at $2.2 billion in 2021 ($22,09 million), a whopping 259 per cent enhance on the $616 million acquired in 2016. It totalled $396 million in 2020.

The entire funding in 5 asset lessons – workplace, residential, retail, warehousing and knowledge centres – stood at $8.4 billion ($8,408 million) in 2021.

Information centre investments accounted for 26 per cent share of the overall PE investments . Workplace accounted for 34 per cent share, retail 10 per cent, warehousing 16 per cent and residential 14 per cent share.

“The share of information centres within the complete PE investments in actual property in India has risen considerably from 2016 to 2021,” the report mentioned.

It added that international buyers accounted for roughly 96 per cent of the overall PE investments in knowledge centres in India since 2011. 

“Information centre progress in India has been vital during the last 5 years, with investments from actual property gamers in addition to PE funds, to arrange numerous classes – from colocation, hyper-scale, managed providers to edge knowledge centres,” the report mentioned.

Whereas the main target has primarily been on metro and Tier-1 cities corresponding to Mumbai, Chennai, Bengaluru, and Hyderabad, buyers have additionally proven curiosity in different areas corresponding to Pune and Indore. 

Mumbai has acquired the biggest cumulative quantity of investments since 2011 at $851 million,  adopted by Bengaluru at $427 million. Delhi acquired cumulative PE investments of $235 million in Information Centres in the identical interval.

Shishir Baijal, Chairman and Managing Director, Knight Frank India mentioned, “In India, the present capability of information centres in relation to the quantity of information created is low, which leaves open the area for creation of extra knowledge centres. Going ahead, India’s rising reliance on digital funds, ever-increasing knowledge consumption, and a surge in e-commerce utilization would want enhanced digital infrastructure, making knowledge centres a dawn sector with excessive investor curiosity.”

“The numerous rise of information technology and its consumption throughout industries has led to a steep rise in demand for knowledge servers and knowledge centres globally,” the report additional mentioned.

In line with the Cloudscene knowledge of 110 international locations, as of January 2022, there have been 8,347 knowledge centres globally. Of those, the highest 5 home greater than 50 per cent of the information centres: the US (33.1 per cent), the UK (5.8 per cent), Germany (5.5 per cent), China (5.4 per cent) and Canada (3.9 per cent). India’s share stands at 1.5 per cent.

Revealed on

Could 23, 2022