With the growing demand of cloud computing, digital storage, and digital processing capabilities, the Indian data center market is expected to grow massively. According to ICRA, a data center revolution is happening in India with about 5,000 MW capacity involving an outlay of Rs 1.50 lakh crore is likely to be added over the next six years.
Businesses across the sectors are rapidly embracing technology-led solutions, including the cloud. Data centers are essential for supporting digital technologies and services, It enables the necessary infrastructure to store, process, and manage large amounts of data and deliver services.
Data localization and data explosion are paving the way for a data center revolution in India, with several corporates – Indian and foreign – planning to build them.
“The key triggers for digital explosion in India are the increasing internet and mobile penetration, the government’s thrust on e-governance/digital India, adoption of new technologies (cloud computing, IoT, 5G etc), growing userbase for social media, gaming, e-commerce and OTT platforms.” said, Anupama Reddy, Vice President, and Co-Group Head, Corporate Ratings.
“This, coupled with favorable regulatory policies viz. the draft Digital Data Protection Bill 2022, providing infrastructure status to data centers, special incentives from Central and state governments like land at subsidised cost, power subsidies, exemptions on stamp duty, discounts on usage of renewable energy and procurement of IT components made locally, and other concessions are expected to boost DC investments in the country,” She added.
The data center market in India has been growing rapidly in recent years, driven by a combination of factors like adopting digital technologies, government initiatives, and the growth of e-commerce and cloud services are accelerating data center demand in India. Research And Markets report shows India’s data center market is expected to increase at a CAGR of 15.07% from 2022-2027.
“The new Bill has increased penalty for breaches and eased cross-border data flows where data can be stored in trusted nations compared to the earlier Bill, which had mandatory requirement for storage of personal data locally. The impact of the new Bill on demand for data centres in India remains to be seen,” said Reddy.
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