The data centre industry in India is expected to grow rapidly propelled by increasing corporate data storage needs, widening consumer base, and government policy initiatives. Digital consumption is rising thanks to activities such as e-commerce, streaming, online education and gaming, and more which is expected to boost the data centre sector.
The TRAI (Telecom Regulatory Authority of India) reports that currently, there are 350 million smartphones in India, 637 million internet subscribers, 9.1 GB data use per month per subscriber and 1.2 billion citizens with exclusive digital identity. Cloud computing is becoming popular, and all these trends are creating a great demand for data centres.
In India, currently, the total number of internet hits have spiked by 50% to 70%, streaming has risen by about 12%, and web gaming transactions have increased by a whopping 97%.
As devices become smarter, more data is needed to operate them, meaning that the average smartphone user will interact more often with their device every day. As data consumption spikes, the demand for data centres is rising as these facilities are required to connect, store, process, and analyze the large volumes of generated information.
Role of Data Centres
Even during this Covid-19 crisis and economic downturn, data centres have remained protected. They are playing a huge role in keeping the nation online and connected as they store and process all things digital. All the cloud applications that we are currently using are backed by data centres which show their critical importance in our lives today.
Data centres started growing in India way back in 2007 because of the rise in dot-com businesses. Since 2016, enterprises have increased their data requirements which has created the need to construct hyper-scale facilities. Organizations are also utilizing multi-cloud, HCI, and hybrid cloud (private/public + colocation) deployments.
There is rising demand for outsourced data centre solutions as client companies need scalable and flexible data centre options that are financially and operationally optimal. Automation and advanced technology provide significant opportunities to improve the efficiency and productivity of data centre processes and operations.
The following trends are predicted to play a huge role in the growth of the data centre sector in India in the near future:
Fund Deployment for Rise in Data Centres
CBRE predicts that global corporations will continue to invest in India and focus on funding leading developers and backing prominent operators in the data centre segment. The Covid-19 pandemic has made businesses invest more in cloud computing as both employers and employees prefer to work from home for safety and practical reasons.
Shift from Captive to Cloud and Co-location Data Centres
Client companies are increasingly preferring co-location facilities over captive data centres. Data centres are likely to be classified as essential services by the government, ensuring uneventful and uninterrupted operations during crisis situations like the current pandemic.
The government is also expected to implement data storage regulations in the near future, which means businesses would soon need to reassess their data centre portfolios in India.
Edge Computing for Data Centres
CBRE expects that cities like Jaipur, Kochi, Gurgaon, Pune, and Kolkata will see the creation of edge data centres in the near future as they have the ability to serve specific geographic regions.
Continued Policy Impetus for Data Centre Growth
Government policies like the Personal Data Protection Bill and the National E-commerce policy will stipulate that the data of Indian consumers should be stored within the nation, which will boost the need for more data centres. In addition, nationwide large-scale programs such as the Smart City Mission, Digital India, and Make in India are likely to further augment the demand for data centres.
The growing e-commerce segment in the country needs assistance in handling its expanding consumer database, and players look at data centres for this help. The Government’s Smart City program, which focuses on improving e-governance in the country, is also likely to spur data centre demand.
Additionally, the government’s digital initiatives and proposed data centre parks policy are some programs that are likely to propel data centre growth. Last but not least, global investors will be enthused by the proposal to award the vital infrastructure status to data centres in India. Reputed companies like STT GDC India have extensive expertise in running data centres with 18 facilities across nine cities.