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Focus on data safety to push realty demand
The Economic Times  |  January 19, 2019

ET Bureau Mumbai & Bengaluru

With technology aiming to transform the way industries and governments work, issues such as data security and privacy will take the spotlight. India is likely to bring in a data protection policy this year which is expected to push the demand for commercial real estate to house large data centres which are necessary to store India specific data locally.


The proposed bill requires that data processing organisations maintain transparency, appoint a data protection office (DPO), undertake data audits, and localise their data.


The data centre market is expected to reach $7 billion in the next two years, recording a growth rate of around 25% from the current estimated level of $4.9 billion, showed a study by Colliers International.


Property markets such as Bengaluru, Hyderabad and Chennai that already have established infrastructure to support data centres are expected to take the lead in such commercial developments with third-party collocation data centres.


“We expect the demand for data centre units, equipment suppliers, and third party data centres to strengthen in 2019 and beyond. Hence, we advise occupiers to look at IT centres such as Bengaluru and Hyderabad which already have the supporting infrastructure to establish data centres,” said Ritesh Sachdev, senior executive director, Occupier Services at Colliers International India.


Currently, the data centre commercial real estate stock is around 2% of the total grade A office stock across seven major Indian cities and this is expected to rise to 5% by 2025.


Following the liberalisation of the country’s economic policies, there has been a growing need to develop complementary infrastructure in order to sustain and support Information Technology enabled Services (IT/ITeS) growth, especially cloud-based services which not only cater to the robust domestic and international IT demand but also aid easy implementation of e-governance initiatives.