India data center market is poised to emerge as a potential data center hub for global enterprises. While the number of Internet users is closing 450 million and shows no signs of abating, the continued adoption of the latest technologies, such as cloud computing, big data, and Internet of Things (IoT), has triggered the demand for data storage. These are some of the factors that bode well for the growth of the data center market in India and are already opening opportunities for Facebook, and Google, among other companies.
Favorable initiatives being pursued by the Government of India toward the establishment of data centers is expected to play a decisive role in driving the growth of the data center industry in India. The Government of India’s Budget 2020-21 includes a proposal to roll out a data center park policy enabling the private sector to establish data center parks within India. While the Reserve Bank of India (RBI) has mandated all the financial data of Indian nationals to be maintained within the country, the Indian government is equally keen on maintaining all sensitive national data within the country. When it comes to other kinds of data, the government wants to ensure at least a copy of the data to be stored locally. While such initiatives would help India in creating job opportunities, gaining a competitive advantage in globalization, and encouraging innovation, and easing accessibility, they would also drive the growth of the data center market in India.
The data center market in India is getting lucrative in terms of investments, particularly owing to the initiatives being pursued by the Indian government to migrate all the governance operations to the cloud as part of the efforts to push a digital economy and encourage e-governance. Several major players, such as Fujitsu Limited, IBM Corporation, Schneider Electric, Netmagic Solutions, CtrlS Datacenters Ltd, Microsoft Corporation, and Siemens, among others, are already active in the India data center market.
Apart from the government, several private players are also investing in establishing data centers. For instance, Digital Realty Corporation has partnered with Adani Group to develop data centers in India. Similarly, Hiranandani Group and Adani Group have announced a strategic initiative to invest and establish data centers in several parts of India. On the other hand, Reliance Industries has partnered with Microsoft Corporation to build data centers powered by Microsoft’s Azure cloud platform across India. Although the number of data centers expected to be established under the 10-year partnership has not been revealed, the companies are expecting the initial two data centers housing IT equipment consuming being developed in the Indian states of Maharashtra and Gujarat to be fully operational in 2020.
As data centers generate a huge amount of heat during their operations, the market for data center cooling products is expected to witness growth in India over the next few years. Furthermore, the rapid proliferation of the telecom industry is also anticipated to spur the demand for data center cooling solutions over the forecast period.
Increasing cybercrime activities has enabled several enterprises to adopt enhanced data center security solutions for safeguarding the information available on-premises and cloud. The espousal of data center security solutions helps enterprises not only to secure their data but also to strengthen their product portfolio. In addition, securing specific servers or applications is not enough. Monitoring and securing a complete IT infrastructure is equally vital. Therefore, all the applications, network devices, including new devices are to be added to the secured complex IT network. Owing to the aforementioned factors, the market for data center security solutions is projected to witness substantial growth over the forecast period.
The India data center IT infrastructure market is anticipated to witness healthy growth owing to the growth and advancements of Machine Learning (ML), Artificial Intelligence (AI), and Deep Learning (DL). Nowadays, enterprises are using these technologies in order to implement new data analytics models. However, the currently available servers are not capable enough to handle the complex workload owing to which several manufacturers are engaged in introducing new server designs with high computational power. This led to the introduction of servers capable of performing high-performance computing workloads. Therefore, up-gradation of existing data centers or introduction of new data centers with enhanced technologies is anticipated to bolster the market growth in the country.
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In contrast to its related industries like consumer electronics and semiconductors, the data center and communications infrastructure industry is expected to be more buoyant with continued strategic investments made to support the increased network traffic and data usage for remote working during the lockdown phase. From school closures necessitating students to use virtual offerings (Google Classroom ) to the governments using business analytics services (Power BI) for communicating virus updates, the demand for communication services and related infrastructure has witnessed an unprecedented rise amidst the global pandemic. Digital services including telemedicine are expected to remain popular even after the pandemic is contained, thereby ensuring strong growth in the communication infrastructure industry. The report will account for Covid19 as a key market contributor.
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