The need for data center infrastructure has been exponentially growing in India in recent years. Data consumption and cloud adoption, along with a growing number of individuals entering the digital age have led to this extensive growth in demand. The Indian data center industry is projected to need billions of dollars in the next few years to meet the demand to build more data centers. As digital technology changes, the Indian data center industry will continue to evolve with it, leading to even greater growth.
The Growing Market
Since 2016, the data center market in India has noted annual growth between 25 and 30 percent, reaching $1 billion by 2019. Many of the country’s data centers are located in four major cities, including Mumbai, Delhi, Bengaluru, and Chennai, accounting for 60 percent of the data centers carrying over 75 percent of the total load. According to Global Data Centre Colocation & Interconnection, the Asia Pacific region will account for more than half of the global colocation market by 2025 with a significant portion of it being located in India.
A Change in Government Policy
One factor that has triggered the data center boom in India is the government’s willingness to step in. The Ministry of Electronics & Information Technology drafted a policy providing infrastructure status to data centers, bringing them in line with other industries like railroads, power, and roadways. This status grants data centers the ability to obtain long-term credit from domestic and international lenders to help fund their growth and simplifies the process to open a new data center. There is also talk of incentivizing investments in data centers.
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