Why Data Centre Industry in India is Witnessing a Drastic Growth?


Why Data Centre Industry in India is Witnessing a Drastic Growth?

Even though the Indian data centre industry in 2020 is poised for growth, the premium hotspots in the country such as Bengaluru, Mumbai, Pune, Hyderabad and Chennai are very buoyant in the growth. According to the marketers, the industry seems to exceed the forecast of $4 billion for 2020. By overcoming the challenges such as land costs, availability of power will be vital in the ongoing growth.

Several companies in the country is planning to develop new data centres to support global hyper scalers and also meet the demand of home-grown companies from different sectors such as retail, service and finance as considering collocation type data centres. However, in India, the colocation data centre segment is one of the fastest-growing areas in the industry. Global hyper scalers such as AWS, Microsoft, Oracle and Google requires more space and capacity to support Indian market demand.

With the adoption of cloud services, colocation data centres benefit a lot from the growth of the companies. The trend is now seen across the globe and India is now transformed as the Research and Development hub for many global technology and pharmaceutical companies. The execution of cloud applications will bring in more clients, as they realize that implementing cloud services is the way to scale up their businesses.

Recently, the government also decided not to store data localisation outside the country, which fuels the growth of the data centre development in India. This made the hyper scalers to prepare for the major expansion within the Indian market, by extending their new builds, which are under the collocation facilities.

To attract the hyper scalers, the infrastructure companies focus on a ‘wholesaler’ model than the ‘retailer’ model. The upcoming year will witness huge growth in the data centre industry and global players are expected to start their part with major acquisitions or cooperations by building a strong presence in India. Along with this, the 5G rollout is expected to fuel the data centre market but only with the legalizations, Indian Government intends to do to support the growth. The only challenge data centre business has to consider are power availability, connectivity access and carbon emission.