datacenter india global market industry digital growth
India’s datacenter industry growing at thrice the pace compared to globalpeers: S&P; reportThe digital technology uprise in India has paved the way for a surge in growthof datacenter industry in the country. According to S&P Global MarketIntelligence, the datacenter market in India is growing roughly three timesfaster than the global market, matching China’s growth rate. The 2020 IndiaLeased Datacenter Market Report by 451 Research(a subsidiary of S&P GlobalMarket Intelligence) states that the fastest growing region across the globein this industry is Asia-Pacific with a CAGR of 10% (2017-2022).The firm figures that while the global datacenter industry grows at a compoundannual growth rate (CAGR) of 7%, India’s datacenter industry is growing at 23%in the same time. This development in the datacenter industry of India can becredited to various factors. One of them is the impending data sovereigntylaws under the Data Protection Bill that will mandate certain class of data tobe stored within the Indian borders. A number of government backed initiativesand incentives, such as allowing global digital companies to conduct businessand setup servers in India, and governments programmes like the Digital Indiaprogramme, have contributed as well.Dan Thompson, Principal research analyst at 451 Research, S&P Global Marketintelligence says, “Digital initiatives from the government and enterpriseswill continue to draw more technology and datacenter companies to India andaccelerate market growth in the region”. He further adds, “We expect an influxof datacenters will come online in the next few years, where the increasedcompetition will certainly result in better, high-quality facilities in themarket and more competitive pricing.”Key findings from the report suggest that 88% of India’s supply is in largemetro cities such as Mumbai, Bangalore, New Delhi and Chennai, up from a yearago due to increased infrastructure disparities.Mumbai, being the commercial and financial center of India and InternationalSubsea destination, is a host to almost 40% of the country’s datacentercolocation market, the highest in India. New Delhi (CAGR 10%, 2017-2023) andBangalore (CAGR 16%, 2017-2023) share third of the country’s datacenter marketat almost 34% followed by Chennai as the fourth biggest datacenter in thecountry (CAGR 19%, 2017-2023).The digital economy of India is predicted to be valued at $1 trillion by 2022and, as mentioned earlier, will attract various global players over the years.This growth in the datacenter industry of India will be welcomed by thepotential global digital companies who look to setup their operations inIndia.