The Data Center industry in India is resolutely on its way to sustainable growth in the coming years according to a new report. India is currently riding the wave of digital transformation with 1.16 billion mobile connections, 800 million internet users with average data consumption of 14.73 gigabytes (GB) data per month as of October 2021. In addition to this, the unprecedented events of the pandemic have led to digital infrastructure becoming imperative at work as well as for learning. Data Centers (DC) are the pillars of this digital growth and have witnessed exponential growth in the last few years.
The Growth of Data Center Industry
The report comes in from Nxtra by Airtel and JLL India jointly according to which the Data Center industry is all set to receive a structural boost from various factors such as the convergence of data protection, industry-friendly regulations, government digital initiatives and investments. Moreover, the rollout of 5G, ever-rising digital usage, cloud consumption and real-time applications triggering edge DCs would usher high growth over the next few years and could possibly lead to India becoming a global data centre hub.
A majority of the growth in the Data Center industry in India will be based around the cities of Mumbai and Chennai due to their business and infrastructure advantages, strategic location, and cable landing stations that are well-positioned to support this growth. Mumbai has been the front runner due to its central location on Indian geography with the availability of reliable power, cable landing stations, BFSI hub and absence of natural hazards. Chennai is a growing alternate and second-best option, with a global BFSI presence and strong manufacturing base coupled with lower set-up costs.
The report adds that digital transformation in India is expected a create an economic value of USD 1 trillion by 2025. Data Centers along with robust telecom Infrastructure will be the key levers driving this wave, superior thrust by Govt of India and Pandemic has added large momentum to this growth. All existing & new-age sectors like Fintech, OTT, CDN, online education, video collaboration, intuitive maps, autonomous car and online gaming and digital netizen service have changed the way we consume services leading to humongous growth of data and real-time computing.