According to S&P Global Market Intelligence, the datacenter market in India is expanding roughly three times faster than the global industry.
Gurugram, Aug. 26 2020 — While the global datacenter industry grows with a compound annual growth rate (CAGR) averaging 7%, India’s datacenter industry is growing at 23% for that same timeframe, matching only China, according to S&P Global Market Intelligence. The 2020 India Leased Datacenter Market Report, led by 451 Research, the emerging technology group within S&P Global Market Intelligence, also found that Asia-Pacific is the fastest growing region in the world currently at 10% (CAGR 2017-2022).
Much of India’s growth is being fueled by impending data sovereignty laws, but also by a number of government-backed initiatives and incentives, as well as regional influences.
“Digital initiatives from the government and enterprises will continue to draw more technology and datacenter companies to India and accelerate market growth in the region,” said Dan Thompson, Principal Research Analyst at 451 Research, S&P Global Market Intelligence. “We expect an influx of datacenters will come online in the next few years, where the increased competition will certainly result in better, high-quality facilities in the market and more competitive pricing.”
Comparison of Top Indian Datacenter Markets – Datacenter Locations (in operational square footage)
Other key findings from the India Leased Datacenter Market Forecast report include:
- 88% of India’s supply is concentrated in its largest cities, up slightly from a year ago due to heightening infrastructure quality disparities and further consolidation of local demand.
- Almost 40% of India’s colocation market resides in Mumbai (CAGR 22%, 2017-2023) owing to its placement as the country’s top commercial and financial center and international subsea cable destination.
- Another third of the market (together 34% of total operational square footage) is split between New Delhi (CAGR 10%, 2017-2023) and Bengaluru (CAGR 16%, 2017-2023), the IT services hub in Karnataka.
- The National Capital Region (CAGR 10%, 2017-2023) is seeing renewed interest from some providers as the various cloud providers prospect the market.
- Chennai (CAGR 19%, 2017-2023), which sits at a major entry and exit point for international subsea cables coming in and out of the APAC region, is the fourth largest datacenter city in India.
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