Business of Data Center Focusing on Recent Investment

India is growing digitally and how. The roll out of the 100 smart cities across four phases, UPI payments, e-Chalan, Swach Bharat  Abhiyaan and Make in India are some of the many government initiatives that are shouting out for the need of more data-centers and this will not stop. Additionally, on the private segment side, there are initiatives that are as basic as online shopping to advanced ones like real-time health management and education facilities, which harness processed data from the data center. With the advent of usage of smart devices, the amount of data being stored, processed and analysed in each cloud is massive and unimaginable. A recent report from the Research and Markets stated that the India data center market is believed to be estimated at $4 billion by 2024, while growing at CAGR of 9% in the period 2018-2024.

Data Center as an Investment 

Owing to popularity and inevitable factors, data centers are long-term assets that can be defined as an infrastructure. Taking note of the ever increasing demand in harnessing the services of the cloud, the central government stressed on data center investments in the Indian market, during the 2018 budget. This has been well acknowledged by the infrastructure investors who are increasingly adding datacenters to their portfolio of assets that includes airports, cellular towers, roads, power plants among other.

Favourite Data Center Destinations in India

Hyderabad, Mumbai and Bangalore have datacenters with hyperscale facilities that have a power capacity of 30-50 MW and some even 100 MW. Research and Markets report mentions that Hyderabad in Telengana is the fastest growing Indian city in terms of data center operations with close to the presence of 10 facilities. This soaring demand is thanks to the many initiatives introduced by the Telengana government. Companies like Alibaba, Google, Microsoft etc. have facilities deployed in the Mumbai city.  Bangalore facilities include companies like CtrlS, ST Telemedia among others. Owing to the successful operations of hyperscale facilities, these cities are seeing heavy investments from local and international players.

Recent Investments in the Data Center Business

A lot of Indian players have jumped the bandwagon and gone ahead with investments in data centres. Edge data centres, Green efficient data centers and colocation or shared facility data centers are what is very popular in India. Adani group has partnered with Digital Realty to build and operate a datacenter that is powered by renewable sources of energy mainly Solar and Wind. Reliance Jio Infocomm has partnered with Microsoft to provide cloud-based solutions. Also, the realty bigwig Hiranandani Group has gone ahead with investing Rs 14,000 crore in conceiving data centers.

Authored by:- Mr. Navin Andrade, General Manager – India, Data Center Dynamics India Private Limited

(The views expressed in this article are by Mr. Navin Andrade, General Manager – India, Data Center Dynamics India Private Limited. doesn’t own any responsibility for it.)

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