By 2024, Data Centre Area in India Set to Reach 24.3 million Sq. Ft

1. By 2024, Data Centre Area in India Set to Reach 24.3 million Sq. Ft India’s data centre area is set to reach 24.3 million square feet by 2024, climbing from 7.6 million Sq. Ft in 2021, growing at a CAGR of 47.32%, as per research by the theindiawatch.com, an India centric market research and business intelligence advisory. In the past two years, with data becoming the new oil, there has been a significant rise in the demand of data centres in the country. As per theindiawatch.com, close to USD 6.64 billion will be invested in the growing data centre market in the country over the period of 3 years. Japan based NTT has an extensive pipeline of USD 2 billion in India in the foreseeable future. Google and AWS are also raising their stake in the Indian market, lured by its long term potential in the data centre segment. After opening the initial data centre in 2016 in Mumbai, Amazon has opened its second centre in Hyderabad. India based enterprises such as Reliance, Hiranandani, Adani, etc. are also venturing the data centre space.

2. Digitization spurring Data Centre Market in India India is one of the biggest digital ecosystems in the world, with mobile penetration to the tune to 1.2 billion subscriptions. The total smartphones subscription in India is around 680 million. The rate of 4G subscription in cheapest in the world, even lower than other emerging economies such as China and Thailand, which has further resulted in accelerated digitization in the country. The digital acceleration has also got a shot in the arm during the pandemic. Covid has forced most of the Indian enterprises to shift their CRM, analytics, emails etc. into the cloud thereby feeding into demand for data centre adoption. The pandemic has also resulted into a steep jump in video downloads, social media consumption, e-commerce adoption, OTT traffic, apps downloads, and much more.

3. India Poise to become an International Hub Alongside domestic demand, India is also poised to become an international data centre hub, consolidating its position in the global and Asia pacific region. India is a global IT giant with huge concentration of IT, ITeS, BPOs, KPOs, offshore business units, international product & technology enterprises, etc. This makes the South Asian economy a natural favourite to become an international data centre hub. The government also realizes the role data centre will play in the advancement of economy as a critical infrastructure. Governing agencies has already granted infrastructure to data centre industry in the country. In addition to the centre government, at the state level as well, the respective governments are drafting favourable policies. India has an inherent cost advantage, which is also fuelling growth in the data centre market. It is estimated that it costs ~ 25% cheaper to set-up a data centre in India than Singapore. Likewise, it is 10% cheaper than China. There are also operational cost advantages in running a data centre in India. Follow Us: Facebook | Twitter | LinkedIn | Pinterest | Instagram Call Us: + 91–8197749919 Email Id: paritosh@theindiawatch.com