Factors Driving Data Center Growth in India

Feb 17,2021 by Nishant Nath
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You might be interested in knowing that what is driving data center growth in India? A leading technology magazine, Communications Today, recently revealed that data centers in India are growing at a compounded annual growth rate of approximately 19.9% per annum with BFSI (Banking and Financial Institutions) and manufacturing sectors indicating the highest deployment. The magazine further projected that the country’s government organizations are projected to avail data center services from reliable and established vendors owing to the high degrees of security, tighter management, and internal controls followed by the third parties.

Consequently, with the rapid advancements in information technology, companies engaged in the technology industry have established their global presence. These enterprises are known for providing best-in-class services by using cutting-edge technology, overshadowing other nations while immensely contributing to the country’s overall growth.

Also Read:Remote Data Center Management – A Few Thoughts

Let’s dig deeper to understand various factors that are contributing to the growth of captive data center facilities in the country

One of the underlying factors that have resulted in a fundamental transformation in the country’s data center architecture is essentially driven by virtualization and cloud computing. The technology is creating significant opportunities for enterprises offering Ethernet equipment to data center facilities. Nevertheless, this competitive realm along with heavily segmented market divisions is creating a difficult environment for service providers to sustain their presence.

Most of the equipment providers are coping up with these challenges, which are further multiplied by factors like technical complexities, various migration options available, a wide number of standards defined by numerous bodies. There are also different baselines like changes in technology, which are further setting hurdles to the current ecosystem.

Despite the above factors, surging energy costs, dwindling organizational budgets, adoption of diverse servers in data centers, and increasing preference for process outsourcing are further paving the way for vendors to expand their presence across the country. Some of the data center services like VPS hosting, dedicated server hosting, and cloud hosting are burgeoning at a rapid pace.

According to industry experts, the adoption of new management and engagement models, including the pay-per-use utility model and colocation services are acting as a catalyst for driving the growth of data center facilities in India. By availing of these solutions, companies have previously known to benefit from cost savings while achieving high returns on investment from cloud computing and virtualization.

To conclude, the rising growth of data center facilities in India is driven by factors like high bandwidth speed, power and energy savings, state-of-art infrastructure, and cutting edge technology used by the service providers. These factors are maximizing a company’s business value while reducing its variable costs. 

Future of Data Center

We have already seen a rise in the data center market in India. But the question is that how much long-lived does this growth in the data center sustains. The quintile of data been produced on a daily basis needs a cloud data center in India on a large scale. Being one of the highest dense populated, India holds endless data and accounts here and there. All of this needs to be saved somewhere safe and a place that is multi-layered secured. There can be no better place than data center India.

In the future, data is going to explode even more and which will further increase the demand for storage capacities. Although there has been seen an escalated data center growth. But there will be needing to expand the data center services. Already the size of data centers has expanded unexpectedly from the size of a room to big towers. Is this what you call the digital India transformation?

It’s not now about what is driving data center growth in India. It is how we can even make the data storing technology solid and secured in the future. The future of the data center in India should be such that it takes care of all the cooling needs and fight all the challenges of the past.

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