- August 12, 2023
- Posted by: Research Desk
- Categories:
Data Center buildings need a clear plot which is well known. Clear in terms of legality, approvals, dimensions, roads, neighbourhood, utilities, emergency response, etc. Redundancy is the key word here.
Early Mover Advantage
If these criteria are to be met, then there is bound to be an early mover advantage for investors. The earlier a company enters the market, the more choices they have. In cases of industrialised locations near Mumbai, there is hardly any free space for acquiring. While new laws have been passed to enable data centres to be located in any ‘zone’, the other physical characteristics fall outside the scope of the laws.
The new law definitely opens up previously unexplored opportunities, but greenfield options are limited in number. Extremely limited in number to be accurate.
Second Wave Choke
Second Wave can have difficulty in finding good clean rectangular plots with wide road access and all the other requirements because of the first round sweep. This is bound to happen in fully occupied industrial areas.
Future Increase in Options
With chemical companies gradually moving out of Navi Mumbai industrial areas, more plots are being opened up. Large IT parks are getting more and more occupied as time passes. Over a longer period there is a high possibility that the belt will be dominated by IT, Telecom, Data Centers & Retail moving away from fabrication, chemical, manufacturing and cold storages.
With the advent of more IT Developer based acquisitions, more plots may get ready for Data Centers within large IT parks, with the developer already having done the ground level work of transforming the land from industrial to IT, both at a regulatory level as well as in the physical sense. This can also give dual options of lease and buy for Data Center operators.