Scalable Power Solutions: A Blueprint for Real Estate Selection in the Next Industrial Revolution
The Rise of Tech-Driven Real Estate In this new era, tech industries—spanning from office spaces and R&D facilities to manufacturing plants and data centers—are becoming increasingly prominent. This shift is not confined to specific geographic areas but is spreading across markets. Cities and regions that offer a blend of an educated and adaptable workforce, an environment conducive to innovative work, and reliable access to power are poised to become hubs of the 5th Industrial Revolution. Cities like Bangalore, Chennai, Hyderabad, and Gurugram offer such hubs in India. Integrating AI and advanced computing technologies across all facets of life means that we need to rethink our approach to real estate. For instance, the demand for data centers and chip manufacturing facilities is soaring. These facilities are not only crucial for supporting advanced computing but are also becoming benchmarks for what modern real estate must offer in terms of floor strength, infrastructure, power, and climate resilience. Scalable Power Requirements Power requirements are central to this transformation. As industries advance, their need for scalable and reliable power sources intensifies. The traditional real estate model, which historically emphasized location and aesthetics, must now prioritize robust power infrastructure. Many MEP (Mechanical, Electrical, and Plumbing) designers and builders still adhere to energy standards of 0.8 KVA per 100 sq. ft, which may be adequate for regular office space. However, new-age R&D and Lab environments that have on-site High Performance Computing (HPC) workloads require upwards of 2.0 KVA per 100 sq. ft. Upgrading an existing building to meet these higher power needs is akin to overhauling its entire infrastructure. For example, a recent discussion with the facilities head at a leading semiconductor company highlighted that specific GPU devices consume up to ten times more power while offering significantly more performance than CPU devices. Modern real estate developments must be engineered to support substantial and scalable power demands to accommodate high-performance computing and other technology-driven operations. Human-Centric Design in the Age of AI Despite its heavy reliance on technology, the real estate sector cannot lose sight of its human element. Spaces must remain human-centric in design and functionality, addressing the evolving needs and expectations of diverse users. This means creating environments that support technological needs and foster well-being, productivity, and engagement. As we integrate AI and robotics into our workspaces, there must be a balance between technological efficiency and the quality of human experience. Sustainability and Technological Integration A common concern is that the rise of AI and advanced computing might be at odds with environmental sustainability. However, this narrative does not hold true if real estate is powered by a commitment to sustainability and green energy. The push towards green power and climate resilience is not just a regulatory requirement but an opportunity to align with the values of the modern workforce and consumer base. Real estate developers and managers must embrace sustainability as a core aspect of their operations. This includes designing energy-efficient buildings, investing in renewable energy sources, and implementing technologies that reduce their properties’ environmental impact. By doing so, building owners can not only meet regulatory standards but also attract tenants and clients who prioritize sustainability. Preparing for the Future: An Action Plan Conclusion The 5th Industrial Revolution is ushering in a new era of technological integration that will redefine one’s approach to real estate. Power requirements, sustainability, and human-centric design are no longer peripheral considerations but central to the future of real estate. By preparing for these changes and adapting to new business models and technological needs, the real estate sector can turn transformation into opportunity and remain competitive in a rapidly evolving landscape. The time to act is now—embrace the change, plan for the future, and position yourself at the forefront of this exciting revolution.
The Need for Future-Ready Buildings in India’s Transformation to a Value-Based Hub
India is on the cusp of a remarkable transformation, shifting from a back-office support center to a dynamic value-based hub. This transition is fueled by a growing focus on high-value activities, digitalization, and the adoption of cutting-edge technologies like artificial intelligence (AI), graphics processing units (GPUs), neural processing units (NPUs), and advanced data connectivity. To fully embrace this promising future, the development of future-ready buildings that can cater to the unique needs of these advanced centers is not just a necessity but an exciting opportunity. The Evolution of India’s Value-chain Sectors The Indian Global Capability Center (GCC) sector has emerged as a significant contributor to the nation’s economic landscape. According to a joint report by Deloitte and NASSCOM in June 2021, the GCC sector could potentially scale up to an annual revenue range of $60 – $85 billion within the next five to six years, underscoring its substantial growth trajectory. Parallel to the GCC sector’s ascendancy, research and development (R&D) activities have also gravitated towards India. With a significant emphasis on semiconductor needs, numerous large multinational corporations and domestic companies are actively pursuing the establishment of manufacturing and testing laboratories within the country. This trend is not limited to the semiconductor industry alone; it is also evident in sectors such as life sciences, healthcare, mobility, manufacturing, service industries, and hospitality. The common denominator underpinning the value-chain-oriented business is human resources, coupled with the global trend toward the adoption of advanced digital technologies. These technologies encompass artificial intelligence (AI), data analytics, automation, cloud computing, social media, and the Internet of Things (IoT), all of which necessitate robust data management capabilities. In this rapidly evolving landscape, the role of commercial facilities cannot be overstated. Identifying and securing access to facilities designed and constructed to meet the demands of the future will be crucial for businesses implementing their value-chain centers in India. These facilities must be equipped to accommodate the unique requirements of GCCs, R&D centers, and data centers, enabling them to operate efficiently, sustainably, and securely while fostering innovation and driving economic growth. The success of these businesses hinges on the availability of such future-ready buildings. Beyond Grade A: Defining Future-Ready Buildings A “Grade A” label is no longer enough. Here’s what defines a genuinely future-ready commercial building in India: Key Requirements for Future-Ready Buildings As India continues to attract global corporations to establish their GCCs, R&D centers, and data centers, the demand for future-ready buildings is on the rise. These buildings must cater to the specific needs of these advanced centers, ensuring they can operate efficiently and sustainably. Here are the key aspects that future-ready commercial buildings must incorporate: 1. High Energy Usage and Reinforced Structures Data centers, GCC and R&D labs require substantial “compute power” for their operations, especially with the increasing use of AI, GPUs, and NPUs. Future-ready buildings must be designed to sustain high energy usage, with reinforced structures to support the heavy equipment and infrastructure required for these technologies. 2. Hybrid Work Environments The pandemic has accelerated the adoption of hybrid work models, combining remote and in-person work. Future-ready buildings must provide flexible workspaces that facilitate collaboration and productivity, regardless of where employees are located. This includes advanced communication tools, robust cybersecurity protocols, and spaces designed for both individual and teamwork. 3. Adequate Power and Backup Systems Future-ready buildings must have adequate power supply and backup systems to ensure nearly 100% uptime. This includes redundant power sources, uninterruptible power supplies (UPS), and backup generators to prevent downtime and ensure continuous operations. 4. Sustainability and Smart Infrastructure Sustainability is a critical aspect of future-ready buildings. These buildings should incorporate green technologies, energy-efficient systems, and sustainable materials to minimize their environmental impact. Additionally, smart building platforms can enhance operational efficiency by integrating IoT devices, automated systems, and data analytics to optimize energy usage and maintenance. 1. Energy Efficiency 2. Water Conservation 3. Waste Management 4. Indoor Environmental Quality 5. Sustainable Transportation 6. Smart Building Integration By adhering to these sustainability standards, future-ready commercial buildings can significantly reduce their carbon footprint, operating costs, and environmental impact while providing a healthier and more productive environment for occupants. 5. Security and Accessibility Security is paramount for GCCs and data centers, which handle sensitive information and critical operations. Future-ready buildings must have robust security measures, including access control systems, surveillance, and cybersecurity protocols. Additionally, these buildings should be easily accessible, with adequate parking and proximity to public transportation to facilitate employee commutes. Creating a future-ready workspace offers several benefits for employees. a. Increased Productivity and Efficiency Future-ready workspaces are designed to optimize productivity and efficiency through: b. Improved Employee Experience and Engagement A well-designed future-ready workspace can significantly improve the employee experience by: c. Enabling Continuous Learning and Upskilling Future-ready workspaces facilitate continuous learning and upskilling opportunities by: d. Promoting Sustainability and Well-being Many future-ready workspaces prioritize sustainability and employee well-being through: By investing in future-ready workspaces, organizations can attract and retain top talent, drive innovation, and position themselves for long-term success in an ever-evolving business landscape. Conclusion As India transforms into a value-based hub for specialized functional support centers, the need for future-ready buildings becomes increasingly critical. These buildings must be designed to accommodate the unique requirements of GCCs, R&D centers, and data centers, ensuring they can operate efficiently, sustainably, and securely. By investing in future-ready infrastructure, India can continue to attract global corporations, drive innovation, and solidify its position as a global leader in technology and services. India’s journey from a back-office support center to a value-based hub is a testament to its evolving capabilities and the growing importance of advanced technologies. Future-ready buildings will play a crucial role in supporting this transformation, providing the foundation for the next generation of companies to thrive in a rapidly changing global landscape.