Global fund house Blackstone expects an at least fivefold growth in its data centre capacity in India in the coming years, fuelled by the adoption of cloud, 5G, and data protection in the country.
Lumina CloudInfra, Blackstone’s data centre platform, is currently building two hyperscale data centres in Navi Mumbai, with a total capacity of 60 megawatt (MW). Construction for the centres are expected to be completed in the next 12-18 months.
“There is three times demand for data centres here. Adoption of cloud, 5G and data protection have become game changers for the business,” Asheesh Mohta, head of real estate acquisitions, India, at Blackstone, told FE.
Mohta said the low cost of data and the low base in the country will be added advantages for the data centre business. He, however, added that the challenge here is getting access to power and land. “If you can sort that out, there are no limits for growth,” he said.
Blackstone plans to finance the business from its funds and may take construction debt. “It is a capital-intensive business. Funds are the biggest barrier for entry. It still costs Rs 50 crore for building one MW of data centre,” he said.
Globally too, there is a massive demand for data centres, according to Mohta.
Warehousing business
He also said the company will monetise the warehousing business in a year or two. “We will do it when we reach a particular scale and at the right value,” Mohta said. However, the fund house may not take the REIT (real estate investment trust ) route as the guidelines do not suit the segment. “Sectors poised for this kind of growth, you need cash flows. Like our hospitality business, normal corporate structure is good for them,” he said.
Ventive Hospitality, promoted by Blackstone and Panchshil Realty, is coming out with an initial public issue, which is opening on December 20.
Its warehousing platform Horizon Industrial Parks has a portfolio of 50 million square feet, of which half is built, and the rest will be built in a few years, he said.
Land is a critical component and owning the land in a platform is the most valuable factor, Mohta said. He also said aggregation of land is the most challenging part in warehousing. “We do not aggregate land. We are happy to pay the landowner for that,” he said.
