Noida — A Digital Infrastructure Goldmine for The Future: Data Centre Revolution is Fueling Noida’s Real Estate Landscape

“India's Data Centre boom to drive 10 million sq. ft. real estate demand, USD 5.7 billion investments by 2026”
 – JLL Research 2024

India’s Data Centre sector is booming, driving unprecedented demand for real estate across major hubs. Whether it was demonetization in 2017, or the Covid Pandemic in 2019, Indian economical ecosystem has shown a ready acceptance for Digital Adoption. This phenomenon has seen a constant rise across industries. Noida – with its prime location and competitive real estate costs when compared to other metro cities of India – is fast becoming a focal point for data centre developments. 

Smartphone Surge: India's Digital Revolution

The number of smartphone users in India has been skyrocketing in recent years, and according to a recent report by Mordor Intelligence, India will have over 1.16 billion Smartphone Users by 2029. The proliferation of smartphones is not just a consumer trend; it is transforming the way people work, shop, communicate, and consume content, creating a massive digital shift.

Understanding India's Data Needs

As the number of smartphone users grows, so does the need for data. According to a Cushman Wakefield report, the per capita data consumption in India is expected to grow exponentially, driven by mobile internet users consuming an increasing amount of content, streaming, gaming, and online services. In 2024, the average Indian smartphone user is estimated to consume over 15 GB of data per month, a figure that is set to rise with advancements in 5G technology

Building the Future: How Data Demand is Shaping Real Estate Development in Noida

As data consumption rises, so does the need for real estate to support digital infrastructure. From data centres and tech offices to retail spaces for digital services, demand is growing rapidly. Projections from JLL and CBRE underscore how this growth impacts Noida’s real estate market, making it a promising investment landscape.

Noida’s Strategic Advantage in India’s Data Centre Boom

As per JLL Research May 2024, India's data centre capacity is anticipated to reach a massive 791 MW by 2026, which is presently 147MW. This translates to a need for over 10 million square feet of real estate​. Noida, with its proximity to Delhi and emerging infrastructure, is primed to attract a significant share of this expansion. Key infrastructure developments, like the upcoming Jewar Airport and expressway links, add to Noida’s connectivity advantages, drawing investment for data centres.

UP Government’s Initiatives and Local Market Readiness

CBRE’s May 2024 report emphasizes government efforts that have streamlined regulations for tech and data infrastructure, especially in tech-centric states like Uttar Pradesh​. Noida has benefitted from favourable policies and initiatives to improve power and connectivity infrastructure, making it easier for developers to cater to data center needs. CBRE further highlights a 100% FDI policy in the sector, which is attracting international interest and funds towards Noida’s real estate market.

An Opportunity for Developers in Noida

JLL forecasts that data centre growth will necessitate the construction of specialized spaces with high ceilings, advanced cooling, and continuous power backups. This requirement is reshaping Noida’s real estate landscape as developers are skittering to cater to these unique needs​. The demand isn’t limited to new spaces; many existing properties are being upgraded to meet data center standards, enhancing Noida’s appeal to local real estate investors.

Future Looks Promising for Noida’s Real Estate

As India’s digital infrastructure evolves, Noida emerges as a crucial node, meeting both national and international data centre requirements. According to CBRE and JLL, this shift towards data-driven real estate growth promises to sustain Noida’s real estate market well into the future. For developers, investors, and stakeholders, Noida is no longer just a city on the rise—it’s a data hub with a dynamic real estate market primed for digital transformation.

“India's data centre market value will soar from $4.35 billion in 2021 to a projected $10.09 billion by 2027, boasting a 15.07% CAGR throughout 2022-2027.” – CBRE 2024