Data Center Investment in India
Data Centers have emerged as one of the top-performing asset classes in the global Real Estate Investment Trust market space due to a shift in investor preference towards Data Center Investments in India during COVID-19. The pandemic has fueled the interest in data demand because of increased government policies, initiatives like Digital India, and National e-Governance Plan. Additionally, remote work/study are other reasons for increasing domestic data usage.
Future of Data Center Real Estate Investment Trusts in India
Data Center Real Estate Investment Trusts in India are growing rapidly with the rise of cloud computing. India has a robust infrastructure and governance that will support the growth.
The smartphone industry in India is poised to grow into a significant market, as well. With the country's population steadily increasing, there are excellent prospects for Indian businesses that can offer affordable smartphones or other services that cater to this demographic. The penetration of smartphones is still marginal when compared with India's large population size. Once 4G continues to penetrate, they'll need data centers across all major cities.
Another very interesting thing about Data Centers is that they are considered one of the safest assets classes due to their hefty Capex requirements. They're both expensive structures that require specialized equipment from tenants who can afford them while providing a consistently reliable ROI.
Data Centre Investment Opportunity by WiseX
The factors that contribute to the growth of the Indian data center market during 2021-2026.
- Impact of the COVID-19 Pandemic
- Increased Investments on Edge Data Centers
- Procurement of Renewable Energy in Data Centers
- Adoption of Hyperconverged & Converged Infrastructure Platforms
With a ton of data center investment opportunities in India, you need to make sure your business is working with an experienced company that can meet all your needs.
WiseX is looking to explore other data center opportunities PAN India. Data centers are typically remote facilities, and they don't have to be located in the heart of a city- so it caters toward those who live farther from urban areas.
The cost of setting up a Data Center
- Data Center investments in India for businesses, and the cost varies depending on what factors you take into account. For example, if they're built in rural areas, the land is less expensive. Still, the building can be more expensive because of reinforcement needed to support digital weightage and stickier tenants due to their extended lease tenure.
The returns on Data Center Real Estate Investment in India
Data Center Real Estate Investment in India is lucrative because they currently give slightly higher yields than warehouses and office spaces. Data Center investment yields in India offer 8-10% returns annually, making them an excellent option for investors who want steady growth without taking too much risk in their portfolio investments.
Parameters to shortlist a Data Center Real Estate in India
Data Center Real Estate in India is a unique form of building that requires an understanding of structural sanctity. The weight and density of racks inside these buildings can have dire consequences on the structure if not evaluated carefully, resulting in damage to the exterior or injury.
Three types of potential risks come with building a new structure: legal, structural, and environmental. Technical analysis is necessary to ensure the stability of construction before it can be approved for use to prevent injury or damage and potential lawsuits from nearby buildings if they're affected by such issues. Structural analysis ensures all components will work together correctly while also being environmentally friendly.
