The Growth of Data Center Providers in India

By abhay -
Data Center

India has always been one of the most promising economies for technological advancement and support. Its outsourcing business is growing by leaps and bounds every day and apparently it seems there is no slowing down. If one of the sectors of the business slows down another one picks up. Currently, India is preparing to meet the increasing demand for data centers.

With the increase of industry, workforce and business, there is an increasing requirement of storage space. There needs to be someplace where all these data needs to be stored. Increase in the number of virtual space used also demands an increase in dedicated servers for hosting, storing and archival.

Since each and every industry is now based on information technology, irrespective of the growth or decline of a particular industry, data center in India are increasing in importance. A data center is basically a repository of dedicated servers that host, manage and archive all kinds of data passed over email clients and web hosting services. These data need to be cleansed periodically from the user desktops or laptops, but gets stored in the data centers for a definite period of time. As a result with the increase of companies and workforce, there is an ever increasing demand of data storage space. Most companies cannot afford the cost to bring in dedicated servers for archival uses. They contract third-party enterprises, who offer data center facilities to these companies.

India is still growing in the data storage and support industry. But considering the amount of growth there has been in market penetration, mobile usage and corporate email solutions, it can be predicted that there is an upcoming boom in the data centers in India. The outsourced data center market in India is expected to grow at a CAGR of 32% to INR 5,500 crore by 2017 across all verticals. The growth will be mainly based due to the increase in business demand from banking and financial service, manufacturing, media and entertainment and international telecom market.

In 2012, DCD Intelligence Industry Census collected data and analyzed that investment in data centers in Indian market is pegged to grow over US$ 4.4 billion by 2013. This will spurt an increase in the data center storage facility space as well as the total power usage for the facilities. An increase in the investment in the data center storage industry will also brings in greater investment in real estate and power, due to the increase in storage facility requirement.

Most Tier IV and Tier III companies do not require a dedicated server for their facility. The few many that do need, satisfy their requirements with one of two servers and a small network room. None of the Tier IV and Tier III companies have a requirement huge enough to contract the services of a data center in India, which is unlike the case for Tier II and Tier I.

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