When COVID-19 was at its peak in India, Data centers became one of the top-performing asset classes in the global Real Estate Investment Trust market space. Investors began to prefer Data Center Investments in India. Due to governmental policies, initiatives like Digital India and National e-Governance Plan, there has been an increase in data demand. Remote work and online study preferences created additional domestic data usage.
Future of Data Center Real Estate Investment Trusts in India
As the concept of cloud computing gains traction, Data Center Real Estate Investment Trusts in India are growing alongside. With its robust infrastructure and governance, a developing country like India is able to support the growth of Data Center Investment.
With the recent developments in the use of technology in everyday lives in India across sections of society, the smartphone industry has benefited significantly. There are now greater prospects for Indian businesses that develop, manufacture and sell smartphones and related technological services. To cater to an entire country with such a densely packed population, there will soon be the need to set up data centers across all cities as the reliance on 4G grows.
Data centers are considered to be a safe assets class since they come with hefty Capex requirements. They are inexpensive and the specialized equipment is brought into the spaces by tenants, who provide a stable and reliable return on investment.
Data Centre Investment Opportunity by Myre Capital
Between the years 2021 and 2026, the Data Center Market in India can possibly grow due to the following factors:
- 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
When there is a multitude of data center investment opportunities in India, your business must work with experienced associates that are able to fulfill your requirements.
Data centers can function even when they are located farther away from city centers. They are typically set up in remote facilities. Myre is thus exploring data center opportunities across India.
The cost of setting up a Data Center
Data Center investments in India come with some advantages and some concerns when it comes to cost. If set up in remote or rural areas, the cost of the land is greatly reduced. However, setting up digital support that is far away from the city may require additional financial weightage. A non-financial weightage comes from the fact that data centers tenants might prove to be sticky tenants due to their extended lease tenure.
For businesses, 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 should be a considered option. It provides higher returns on investment than other options such as warehouses and office spaces, by about 8 to 10% per year. Grow investors that prefer steady growth, low-risk assets in their investment portfolio.
Parameters to shortlist a Data Center Real Estate in India
To set up a Data Center Real Estate in India, one would require a thorough understanding of structural sanctity. Holding heavy and dense racks inside the buildings can be detrimental to the integrity of the structure. Unless periodic evaluations are carried out, there is a possibility of exterior damage or injury.
Building a new structure comes with legal, environmental and structural risks. The structural risk can be controlled by carrying out a technical analysis of the stability of construction. With strong structures, one can avoid lawsuits arising from injury and environmental damage. Conscientious structural analysis can also furnish some environmentally friendly construction options.