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Cushman & Wakefield — What's Next for Data Centres in India webinar (July 2021)
21 slides from Cushman & Wakefield's conference presentation, July 2021
Slide 1: What's Next for Data Centres in India?
FOR DATA CENTRES IN INDIA? July 2021
Slide 2: With You Today
WITH YOU TODAY GAUTAM SARAF Managing Director, Mumbai and New Business Key global industry trends and its impact KEVIN IMBODEN on India Senior Research Manager, Data Centre Insights, Global Research The growing Asia Pacific market and how India will emerge as a potential primary market TODD OLSO
Slide 3: Key Global Industry Trends
KEY GLOBAL INDUSTRY TRENDS KEVIN IMBODEN Senior Research Manager, Data Centre Insights, Global Research
Slide 4: Major Cloud Services Lead the Way
MAJOR CLOUD SERVICES LEAD THE WAY CORPORATIONS AND GOVERNMENT AGENCIES ALIKE ARE MAKING THE MOVE MAJOR CLOUD SERVICE REVENUE (US$B) Events of the past year accelerated certain $160 existing trends as organizations rapidly adjusted to a more flexible and scalable IT structure. $140 Many began or cont
Slide 5: M&A - Portfolio Sales Red Hot
M&A- PORTFOLIO SALES RED HOT AS NEW ENTRANTS GAIN TRACTION AND CURRENT PLAYERS EXPAND QTS being acquired by Digital Colony purchased Blackstone Landmark Dividend US$10B US$972M (including debt) Mapletree acquiring Switch acquired Data former CVMCII assets Foundry US$1.3B US$420M Data Centre Webinar
Slide 6: Construction Aplenty in Core Markets
CONSTRUCTION APLENTY IN CORE MARKETS RAPID SCALING UNDERWAY TO MEET DEMAND Current 100 MW market Coming soon! Data Centre Webinar | Cushman & Wakefield 6
Slide 7: Primary Market Construction Comparison
PRIMARY MARKET CONSTRUCTION COMPARISON GLOBAL EXPANSION CONTINUES WITH CERTAIN MARKETS OUTPACING OTHERS 0 500 1000 1500 2000 2500 3000 3500 Northern Virginia London Silicon Valley Tokyo Frankfurt Chicago Singapore Amsterdam Sydney Mumbai Operational Under Construction In Planning Data Centre Webinar
Slide 8: The Growing Asia Pacific Market
THE GROWING ASIA PACIFIC MARKET TODD OLSON Managing Director, Japan & Korea, Head of Asia Pacific Data Centre Practice Group
Slide 9: Data Centre Demand Follows Infrastructure
DATA CENTRE DEMAND FOLLOWS INFRASTRUCTURE ASIA PACIFIC SUBMARINE CABLES APAC DATA CENTRE RANKING 2021 1 SYDNEY 6 SEOUL Chiba 2 7 Busan Shanghai Mie SINGAPORE MELBOURNE Taipei 3 8 Hong Kong Mumbai Singapore HONG KONG OSAKA Chennai Guam 4 9 Philippines TOKYO BEIJING Singapore Indonesia 5 MUMBAI 10 SHA
Slide 10: Regional Capital - M&A
REGIONAL CAPITAL- M&A PRIVATE EQUITY, PENSION FUNDS, AND MUCH ELSE SEARCHES FOR DEALS As demand continues to grow across Asia, further backing will pour into these Warburg Pincus backing Macquarie backed AirTrunk to and other ventures; PDG Princeton Digital to create a expand past Australia pan-Asia
Slide 11: Operational Asset Sales
OPERATIONAL ASSET SALES CURRENTLY OPERATING ASSETS ARE HARD TO COME BY... AND SELL BIG CapitaLand acquiring Daily Equinix purchases previously Tech campus in Shanghai leased building in Singapore US$565M US$95M Charter Hall acquired Sydney Long leases in primary markets carrier hotel from Telstra ar
Slide 12: Land Pricing - Select Markets
LAND PRICING - SELECT MARKETS SINCE 2018: DATA CENTRE LAND EXPENSIVE IN CERTAIN MARKETS... $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 Hong Kong On a USD/SQM basis, Seoul markets across Asia are Brisbane severely supply- constrained from an Perth available land Jakarta perspect
Slide 13: The Surge in Demand in India
THE SURGE IN DEMAND IN INDIA VIVEK DAHIYA Managing Director, India Lead – Data Centres, New Initiatives
Slide 14: Key Hotspots
KEY HOTSPOTS Others* 1% Mumbai Mumbai 31% 44% Bengaluru 3% Kolkata Kolkata 1% 7% Additional Existing Upcoming Pune 5% Capacity Pune Chennai 9% Capacity 22% Bengaluru Hyderabad 6% 25% Chennai Delhi-NCR 8% 13% Hyderabad Delhi NCR 14% 11% 655 MW 8.6 msf 1.0-1.1 GW 12-13 msf Existing Colocation Capacity
Slide 15: Demand Characteristics
DEMAND CHARACTERISTICS GLOBAL CLOUD FIRMS COLOCATION FIRMS 150-200 MW 700-750 MW Additional Capacity (~5 years) Upcoming Capacity (~5 years) 2-2.5 msf 9-10 msf Total Size Total Size *Upcoming capacity of global cloud players could go up significantly as they firm up plans for future growth and annou
Slide 16: Entry / Expansion of Global Firms
ENTRY / EXPANSION OF GLOBAL FIRMS Major proportion of committed Global Data centre Investments investments are from global firms operator/Cloud Firm Location (U$mn) Investment details Domestic investments 36 MW DC campus in Noida; Agreement with Chennai, Noida $350 35% Tamil Nadu for a DC campus Mum
Slide 17: Potential for Further Growth?
POTENTIAL FOR FURTHER GROWTH? City Population MW People/MW Kolkata 14,617,882 5 2,923,576 Delhi-NCR 2,645,4000 72 367,417 FLAP leaders’ Frankfurt & London range between 14k- 21k. Mumbai & Chennai at 71k & 156k. Hyderabad 9,700,000 38 255,263 Pune 7,276,000 32 227,375 2 largest urban centers: Delhi N
Slide 18: Action on the Ground?
ACTION ON THE GROUND? RAPID GROWTH CONTINUES WITH SOME CITIES OUTPACING OTHERS Kolkata Pune Bengaluru Hyderabad Delhi NCR Chennai Mumbai 0 100 200 300 400 500 600 700 Operational Under Construction In Planning Data Centre Webinar | Cushman & Wakefield 18
Slide 19: Key Drivers: India's Data Centre Market
KEY DRIVERS INDIA’S DATA CENTRE MARKET Incentives / Policies Data consumption International submarine cable connectivity Big data, 5G, IoT (Mumbai – 8, Chennai – 4) Data localisation Cloud computing 10,000 Petabytes $15 Bn $7.4 Bn 05 Asian countries with data localisation law (China, Indonesia, Viet
Slide 20: With You Today
WITH YOU TODAY GAUTAM SARAF Managing Director, Mumbai and New Businesses Gautam.Saraf@ap.cushwake.com KEVIN IMBODEN PLEASE SUBMIT YOUR QUESTIONS BY Senior Research Manager, Data Centre Insights, Global Research CLICKING THE ICON WITH THE QUESTION Kevin.Imboden@cushwake.com MARK ON THE TOP RIGHT HAND
Slide 21: Thank You
THANK YOU | END A REPLAY OF THE WEBINAR AND THE REPORT WILL BE SENT TO ALL REGISTRANTS AND PUBLISHED ON OUR WEBSITE: www.cushmanwakefield.com/en/india/insights/whats-next-for-data-centres-in-india About Cushman & Wakefield Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm
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