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NTT and the Prestige Group have formed a partnership to develop a cutting-edge 100 MW data centre in Bangalore, marking the Prestige Group's entry into the data centre business in India. Spanning over a million square feet of gross leasable area (GLA) across three phases, the project represents a significant milestone for the south-based developer. With a total value of Rs 700 crore, the agreement encompasses land acquisition, infrastructure development, and construction. The first building, covering 350,000 square feet, is expected to be completed within a year, followed by two additional buildings.
Juggy Marwaha, CEO of Prestige Office Venture, highlighted the immense potential in the data centre industry, which complements their existing office business. The increasing demand for robust infrastructure and reliable power supply in data centre operations is attracting major players like NTT and established and reputable developers like Prestige Group. Marwaha emphasized the significance of commercial real estate and the ongoing consolidation in the industry, driven by technological advancements and evolving operational requirements.
NTT, as the third-largest data centre provider globally, has been actively investing in India, with 11 operational data centres already in place. By June, they are set to launch six additional data centres in strategic locations across Airoli, Mahape, Bengaluru, and Chennai. NTT currently holds a substantial 22 percent market share in India's data centre industry. Their investments in India have surpassed $4.5 billion since 2020, including a recent $2.5 billion memorandum of understanding (MoU) signed with Maharashtra to develop data centres, submarine cables, and renewable energy plants over the next five years.
Furthermore, the infrastructure status granted to data centres in the 2022–23 budget will boost the sector in Karnataka. The Karnataka Digital Economy Mission, aimed at creating one million jobs and achieving $150 billion in IT exports by 2025, will drive the demand for digitalization and data storage, particularly in Bangalore. India's data centre sector has witnessed substantial growth, with investments totalling $14 billion over the past five years. Experts predict that the sector's investment value will exceed $20 billion by 2025, driven by improved technology infrastructure and the widespread adoption of technologies such as 5G, artificial intelligence, cloud computing, and the Internet of Things (IoT).
In summary, the partnership between NTT and the Prestige Group signifies a significant entry into the data centre business for the latter. The project's scale, along with NTT's substantial investments and market presence, reflects the growing demand for advanced data centres in India. As technology continues to advance and new digital innovations emerge, the data centre sector is poised for further expansion and plays a pivotal role in supporting India's digital economy.
Prestige Group, a dynamic player in the Indian real estate landscape, expands its portfolio to include the burgeoning data centre industry. With an established reputation for crafting exceptional residential, commercial, retail, leisure, and hospitality spaces, Prestige Group now sets its sights on the realm of data centres, harnessing innovation and diversification to shape the future of the Indian property development landscape.
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