Japanese technology firm NTT Data has leased about 100,000 square feet (sq. ft.) of office space at Brookfield’s Candor TechScpace in Gurugram, in one of the biggest such deals in the financial and tech hub since the lockdown.
“The company was looking for office space in north India for some time now and has finally locked in this office space in Gurugram,” a person familiar with the matter said.
NTT Data had said earlier that it would invest about $2 billion over the next four years to expand its data center business in India. NTT’s Global Data Center division on Wednesday launched a new data center in Mumbai, expanding its capacity in the country by 30%.
According to a Knight Frank report, the first half of the year saw its average transacted space decrease to 2,927 square meters (sq. m) from 4,340 sq. m compared to the same period in 2019. The number of deals in NCR also came down to 66 in the first half from 81 in the same period of 2019.
The trend of smaller deal sizes has been mainly propelled due to smaller space take-up by corporates in Noida and Gurugram.
“In Gurugram, the grade A rental ranges above Rs 100 per sq. ft. Most of the leasing activity this quarter has happened in Noida, where the rental is Rs 50-60 per sq. ft. Within Gurugram, too, most of the leasing has happened in new areas, where the rental is around Rs 60,” said a property consultant.
NTT, which had earlier acquired local data center firm Netmagic, currently operates 10 data centers across four major cities, with over 1.5 million sq. ft. and over 150 MW of power generation. It plans to double the data center capacity in the next two to three years.