Google has signed a 10-year lease for 43,100 sqm at the Adani Data Center in Noida, India, for a starting annual rent of Rs130.98 crore ($16 million), according to records obtained by CRE Matrix, a real estate data analytics company.
Dc Development Noida Private Limited, a division of Adani Enterprises Ltd., and Raiden Infotech Pvt., a subsidiary of Google Inc., have signed the agreement. Ltd, where Google would pay a monthly cost of Rs235 ($2.86) per square foot with an annual increase of 1%.
According to a CBRE report, by 2025, it is anticipated that India would have invested more than $20 billion in data centers. The country’s need for DCs has increased as a result of the country’s increasing digitalization and the forceful government policy encouragement.
Additionally, high-end servers are now required due to the multifold increase in data transmission prompted by OTT, online gaming, increasing smartphone usage, e-commerce, EdTech platforms’ online learning programs, location-agnostic work, and advanced technologies like machine learning, 5G, blockchain, and artificial intelligence.
Furthermore, India’s data center industry is rapidly expanding in Noida, where the Adani Group intends to build one of the country’s largest data centers.
The Noida’s local authority gave the company 39,146 sqm of land in Sector 80 in April 2021 for a data center and the facility will likely receive an investment from the company of Rs 2,500 crore ($333 million).
Moreover, the company acquired a second 34,275 sqm land in Sector 62 of Noida in July 2021 with the goal of constructing a data center there for up to Rs 2,400 crore ($323 million).
From 2023 on, the company plans to provide 100MW of capacity in Noida, while the forthcoming project in Sector 62 would create 1,350 employment.
At the moment, Mumbai and Delhi are home to two Google Cloud Platform (GCP) regions in India. Currently, Adani has already agreed to host a number of its systems and programs in Google Cloud.
Furthermore, in the next 10 years, AdaniConneX, a joint venture of Adani Enterprise and US-based EdgeConneX, is planning to build 1,000 megawatt data centres — almost double the present size of the total industry.