Indian Data Center Market Is Expected To Cross USD 2bn By 2019

The demand for digital services is causing the Indian ecosystem to expand quickly to manage IT operations on a massive scale. As the economy continues to progress, local and international service providers are scaling-up their operations across the country to reach to India’s broad customer base, exploiting the need for multi-tenant data centre abilities. According to several reports, 84 percent of India’s data centre supply is currently concentrated across big cities like Bangalore, Chennai, Mumbai, New Delhi and Pune.

Mumbai, being the financial capital of India, is perpetually adding infrastructure to meet the growing presence of global cloud and IT service providers who are setting up their facilities in the city. Evidently, one-third of the entire data centre footprint of the country is concentrated in Mumbai.

New Delhi, too, holds a decent tally of data centre providers in India. According to the reports, this could be because of factors like the rise in e-commerce players and start-ups around the city, Digital India Initiatives taken by the government, and a high number of disaster-recovery data centres of state and private entities.

If we talk about Bangalore, the Silicon Valley of India, it secures a large infrastructure base for IT service providers. Also, by being at the convergence of network connectivity in the country, the city plays an important and unique role in the Indian economy. Therefore, a steady rise is expected in data centre facilities in Bangalore thanks to the digital transformation expansion the city will see in the coming years, according to the reports.

Despite the challenges, the opportunities for data centre providers in India are enormous. Already, several homegrown providers and big payers are offering a range of managed services, with their own public and private cloud platforms, and we expect more on the horizon.

Experts have predicted that India will witness continuous growth for cloud computing as a service sector, with a compound annual growth rate of 25 percent over the next few years. It is estimated that Indian colocation and managed hosting services market would cross 2 billion USD in revenue by the end of 2019.

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