What Factors Drive the Data Center Market Growth in India?

In the age of digitization, India’s data center industry is expanding rapidly. The country is well positioned to become a hub for cloud computing data centers globally, with a predicted growth of USD 8 billion by 2026 supported by technologies like artificial intelligence, machine learning, and analytics, according to a report by ASSOCHAM.

Global demand for cloud services has increased as a result of the pandemic, and digital transformation is speeding up in all industries. Hyperscale data centers have seen an increase in investment as a result of the cloud transition. In direct proportion to the growth in data consumption and use of the cloud, the necessity for data centers has increased tremendously.

As more businesses are willing to invest in new data storage and deployment facilities, data centers have expanded significantly in both developed and developing countries.

Accordingly, the Indian IT ministry intends to provide incentives for data centers within a national policy framework valued up to Rs. 15,000 crores. In the data center ecosystem during the next five years, the government plans to invest up to Rs. 3 lakh crores, according to a draft of the policy.

The data center industry was given infrastructure status by the finance minister when the Budget 2022–23 was unveiled. This will hasten India’s data center expansion even more.

Moreover, the top cloud service providers in the world have made their availability zones known in India, particularly in locations like Hyderabad, Delhi (NCR), Chennai, Mumbai, and Bengaluru since they have good fiber connectivity in addition to being close to users.

Three availability zones (AZs) are being built by Amazon Web Services (AWS) in Hyderabad. Microsoft has also purchased Hyderabad property pieces in order to establish a new data center region. Mumbai and Delhi-NCR are Google’s two cloud computing hubs in India.

Additionally, companies including Yotta Infrastructure, NTT-Netmagic, STT GDC India, Sify Data Centers, CtrlS, and others are constructing hyperscale data centers and data center parks in India, in order to achieve this expansion, the government has implemented a number of laws and reforms aimed at making India a hub for global data, and in the years to come, more new players may enter the market.

The rapid adoption of cloud computing and digital transformation by Indian businesses; the low operational and development costs; the availability of skilled labor; and government initiatives like the Digital India initiative, the focus on self-reliance, and the classification of data centers as infrastructure are among the key growth drivers in the country’s data center market.

The Indian data center market appears to have a promising future. Data centers will become a more significant part of the country’s development as the Indian economy expands and digital technologies are more widely used.

Demand is projected to increase further as a result of rising reliance on digital connection, the impending launch of 5G, and expanding use of IoT-connected products. India has the potential to dominate the use and development of data centers on a global scale with the appropriate legislation in place.

Publish on W.Media
Author Info - W.Media
Share This Article
Other Popular Posts
DW SA 2027 (4)
Past Events
August 1, 2021