- The short — five-line brief
- Corridors & siting: metro core · ring · tier-2
- Power play: MW ladders, PUE, and green PPAs
- Fiber & redundancy: the 3-route rule
- Permits & incentives: what actually saves time
- Build vs Buy: hyperscalers and local colos
- Unit economics: ₹/MW, ₹/rack, and time-to-revenue
- Playbooks: developer, hyperscaler, enterprise
The short
- Capacity: Demand concentrates in 3 corridor archetypes—metro cores, urban rings, and power-rich tier-2.
- Power: Connection agility beats tariff—a fast 50–100 MW ladder can trump a cheaper but slow line.
- Fiber: Three genuinely diverse routes (OSP + two neutral) reduce outage and SLA penalties.
- Permits: Single-window only works if utilities are in-scope; pre-zoned DC parks cut months.
- Model: Hyperscalers mix JV/built-to-suit with colocation for speed; locals win on brownfield agility.
Corridors & siting
Metro core (CBD/IX proximity)
- Pros: Lowest latency to IX and enterprise cores; premium rack yields.
- Cons: Land scarcity; power import limits; capex intensity.
- Use: High-density retail colo; interconnect hubs; AI inference edges.
Urban ring (20–60 km)
- Pros: Better land parcels; 132/220 kV access; cooling logistics.
- Cons: Permit patchwork across municipalities.
- Use: Campus scale, scalable to 50–150 MW in phases.
Tier-2 power-rich
- Pros: Faster power tie-ins; lower land cost; renewable PPAs nearby.
- Cons: Backhaul diversity must be built; staffing fly-in costs.
- Use: Build-to-suit for training clusters; archival; price-sensitive workloads.
Power play — MW ladders, PUE, green PPAs
| Item | Good | Better | Best | Notes |
|---|---|---|---|---|
| Initial tie-in | 20–30 MW @ 132 kV | 50 MW @ 220 kV | 100 MW @ 400 kV | Speed > tariff for first 12–18 months |
| PUE target | 1.55–1.60 | 1.45–1.52 | ≤1.40 (climate/tech permitting) | Hot & humid sites need smart free-cooling windows |
| Energy mix | Grid + RE credits | 25–40% firm RE | 50–70% RE with storage | Round-the-clock PPAs reduce green-washing risk |
Fiber & redundancy — the 3-route rule
- At least three physically diverse long-haul routes; avoid common trenching near rail/ROW.
- Metro ring with dual POPs; IX adjacency for peering + cloud on-ramps.
- Design SLAs with trench-cut penalties and MTTR commitments.
Permits & incentives — time is the currency
What actually saves time
- Pre-approved DC zones with bundled power + water + environmental clearance.
- Utility coordination inside single-window (not just municipal NOCs).
- Standardised fire & OT security checklists to cut re-work.
Incentives that move the needle
- Stamp duty/SGST refunds and connection-charge rebates.
- RE banking & open-access certainty (≥15-year horizon).
- Fiber wayleave fast-track with capped TATs.
Build vs Buy — hyperscalers & local colos
| Model | Pros | Cons | Best for |
|---|---|---|---|
| Build-to-suit / JV (campus) | Custom density, long contracts, power at scale | Time to revenue; capex heavy; permit risk | Hyperscalers with steady multi-year demand |
| Wholesale colo (shell + power) | Faster ramps; lower capex; landlord power procurement | Less customisation; SLA shared | Cloud edges; AI inference; scale-ups |
| Retail colo (per-rack) | Maximum agility; interconnect rich | Highest ₹/kW; limited high-density blocks | Enterprises, fintech, SaaS edges |
Unit economics — fast sanity checks
Capex & yields (illustrative)
- Shell + power infra: ₹8–11 cr/MW (site & kV level dependent).
- Fit-out for high density AI halls: +₹3–5 cr/MW.
- Retail rack yields premium vs wholesale by 25–40%.
Time-to-revenue levers
- Phase-wise energisation (10–20 MW blocks, 90-120 days apart).
- Pre-approval of designs with utilities & fire to avoid re-draw.
- Interim DG + temporary feeders to light first halls early.
Playbooks
Developers
- Secure dual-utility LOAs before land close; add reversion clauses.
- Lock three-route fiber; trench maps embedded in contracts.
- Standardise hall modules (5–8 MW) to shorten procurement.
Hyperscalers
- Blend JV (training/long-term) with colo (edge/seasonal peaks).
- PUE and RE targets embedded in MSAs; performance credits.
- Design for liquid cooling lanes even in air-cooled shells.
Enterprises
- Prioritise interconnect & SLA over raw ₹/kW; multi-availability-zone DR.
- Bundle security certifications (ISO/PCI/CSA) to reduce audits.
- Negotiate growth options per rack row to avoid re-site.