Chennai Makes It To Top 10 Markets In C&W’s Global Data Centers Market Report 2021
Chennai has made it to the top ten markets to watch, according to Cushman & Wakefield’s 2021 Global Data Center Market Comparison report. The Top Ten markets to watch for include – Nairobi, Stockholm, Cape Town, Moscow, Athens, Abu Dhabi, Santiago, Chennai, Kuala Lumpur, Vienna. These cities have made the list as they are receiving interest from operators and hyperscalers alike, thanks to local demand from key industries, thus driving future investments in this asset class.
The report also highlights the top ten data center markets globally and Sydney and Singapore in APAC feature in that list.
Cushman & Wakefield’s study evaluated 1,189 data centers around the world, utilizing a unique weighted methodology to rank 48 global markets to arrive at the overall Top Ten markets.
Secondary markets continue to grow in importance, with areas particularly in Europe and Asia gaining interest as some workload move to the edge. These secondary locales often provide greater margins for data center operators, with some growing to primary market status in the future. In Asia Pacific in particular, markets like Chennai and Kuala Lumpur are receiving interest from operators and hyperscalers alike.
Sydney, labeled as an emerging market and alternative in last year’s ranking, moved drastically up the overall rankings to third place, capping off a year of major new development announcements and an ongoing transformation of much of Australia’s government IT infrastructure. The business capital of Australia is a key location for initial in-country cloud deployments and enjoys robust regional connectivity.
Although Singapore and Amsterdam both have tempered data center development via local moratoriums, both still finished in the top ten, a testament to their strong existing markets, dense fiber, and array of available services. As other markets continue to grow, it will remain imperative for both markets to find solutions for future development, potentially through new forms of power generation or further multi-storey construction for the limited number of remaining development sites.
Of the new markets introduced this year, Seoul received the highest overall score, marking an impressive debut for a long-overlooked data center market. Although considered a secondary market, Seoul has nearly 300 MW of capacity, a solid development pipeline, and all major cloud services available. Well-managed cities with smaller markets such as Zurich, Melbourne, and Madrid enjoyed continued gains, suggesting growing ecosystems in secondary locations, and long-time data center stalwarts London, Tokyo, Frankfurt, Silicon Valley, and Hong Kong all remain extremely relevant.
Commented on the report launch, Mr Vivek Dahiya, Managing Director – New Initiatives, Cushman & Wakefield India,” While Mumbai and Chennai continue to be leading destinations for Data Center firms in India, we expect other Tier I Indian cities also to witness strong interest. These emerging locations should also add considerable supply in the coming years. The proposed data center policy and state level incentives will further support investments in this asset class.”