Is India Emerging as Data Center Hub in 2022?
Data Centers have shown impressive expansion in both developed and emerging countries, as more and more enterprises are willing to invest in new data storage and deployment facilities.
Riding on the coattails of increased adoption of cloud infrastructure and rapid data consumption by digital users, the Data Center Market in India and abroad have witnessed an unprecedented spike in the last few years.
Spurred by the worldwide lockdown happenings during the pandemic times, the number of digital users has grown exponentially at a breakneck speed which has astonished a lot of industry experts.
Therefore, becoming the driving force of escalating advancements taking place in the Data Center Market in India which is now expected to grow further in the next five years.
This in turn has resulted in attracting multiple medium and large-sized businesses to invest and built their data centers locally to control the flow of collected data and process it efficiently.
Due to this, various businesses and enterprises in India, as well as worldwide, have shifted their applications and infrastructure to either third-party colocation data centers or cloud ecosystems.
Counting COVID-19-led change in consumer behavior that increased the adoption of online technologies, the ever-changing business landscape is driven by growing virtual classes and online delivery of both essential and non-essential items, which have now become some of the driving factors that fueled the Expansion of the Data Center Market in India and abroad in 2022.
Reality of Data Center Market at the Global Level
As the dependence on cloud infrastructure increased rapidly, the global data center market is predicted to be worth roughly US$ 77 billion in 2022.
And according to a recent report, Data Center revenue is forecasted to expand at a high CAGR rate of 13.8% while expected to reach US$ 279 billion by 2032.
Data Centers have shown impressive expansion in both developed and emerging countries, as more and more enterprises are willing to invest in new data storage and deployment facilities.
The emergence of connected systems with the popularization of cloud culture has now boosted the industry expansion and has brought forward several prospects for data center enterprises and knowledge.
Presenting a rough idea of the Data center situation in terms of both absorption and construction, the North American region has recently seen an increase in propagation in the United States.
Especially the San Francisco Bay Area which has recently surpassed Washington DC, and Dallas as the third-largest data center business in the United States.
Data Center Market in India in 2022
Stirring the market flow of cloud services, whose providers are increasing day by day, businesses are now preferring to opt for external data centers more since in-house data centers require larger investments for both their construction and their subsequent maintenance.
This has led to a new culture or trend of External Data centers as well as Colocation data centers in the Data Center Market in India.
Home to millions of digital users, India accounts for one to two percent of the global market.
Currently, housing over 80 third-party data centers with increasing growth in investment from both local and international players, Data Center Market in India is expected to reach $4.6 billion per annum by 2025, according to the latest report.
In a recent turn of events, some of the big tech companies Amazon Web services (AWS) has decided to invest around $1.6 billion to set up two Data centers in Hyderabad, while NTT Limited has also declared its future investment plans of injecting around $2billion in India over four years for the growth of Data Center Market in India.
Recently, the Data Center Market in India has been able to garner multiple investments in over 20 projects.
In terms of numbers, Maharashtra, specifically Mumbai is dominating the Indian market which is then followed by Tamil Nadu, Uttar Pradesh, Telangana, and other states.
Another factor contributing to the growth of the Data Center Market in India is the higher demand for colocation data centers in both global and local enterprises.
The year 2021 witnessed significant investments in Data Center Market in India from over ten colocation providers ranging from Sify Technologies, Pi Data Centers, Colt Data Centre Services, Reliance Jio Infocomm, ST Telemedia Global Data Centres India, Bridge Data Centres, Bharti Airtel (Nxtra Data), Web Werks, and Tokyo Century & NTT, etc.
Considering the geographical conditions, Maharashtra has emerged as one of the major data center hubs across the Asia Pacific and is dominating the Data Center Market in India.
This can be attributed to Maharashtra’s friendly government IT policy that aims to encourage the increase in technology adoption and promote the information technology industry in the state.
According to the latest statistic report based on the data center industry, India’s data center market is primarily concentrated in the top four cities including Mumbai, Delhi, Bengaluru, and Chennai which account for 60% of the total data center sites and over 75% of IT load capacities.
Ironically, Mumbai alone possesses 40% of the total installed capacity in the Data Center Market in India.
Wrapping Up
Contributing the biggest factor in all these recent changes in tech adoption and the rise of the Data Center Market in India is due to the recent announcement of the Ministry of Electronics & Information Technology whose latest policy provides infrastructure status for the Indian data center sector.
This new policy has also simplified the clearance process of setting up Data Centers in India.
