Why it might be time to invest in a data center in India

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A data center empowers a company by building a far superior online infrastructure. In today’s context, a bad data center means bad infrastructure.

It does not matter whether you are a small, big, or mid-sized firm; every business needs a data center.

Google, the all-powerful god of the internet, uses data centers to handle extreme amounts of online traffic. It has and operates data centers around the world to keep their products running 24/7 all year-round. Check out Google’s data center locations around the world.

This article talks about the current situation of the data center market in India — its opportunities, future, investments, and growth, along with its threats and challenges.

The current situation

According to a report by IAMAI, the Indian data center market shows promising growth over the past few years due to the increased usage of data through smartphones, social networking platforms, ecommerce platforms, and government projects.

Here is some striking information that explains the present situation of the data center market in India:

• The cost involved in data center IT infrastructure investments stood at US$2.20 billion and is expected to reach US$2.29 billion by the end of 2018.
• Server growth has reached US$658 million in 2015.
• Enterprise networking and storage registered a growth of 5.5 percent and 10 percent as compared to the previous year with a revenue of US$944 million and US$426 million in 2015.

• In 2015, India’s data center market share was around 1.2 percent of the world’s data center IT infrastructures and 5.23 percent of Asia-Pacific’s (APAC).

• According to Gartner, India became the 2nd largest market for data center infrastructure and the second fastest growing market in APAC last year.

Having looked into the ongoing situation of the data center market in India, let’s explore what the Indian government is doing to create new opportunities and the future scope and growth of data centers in India.

Future of data centers in India

According to Gartner, the Indian Government is about to spend US$7 billion on their IT products and services this year which would be an increase of 3.1 percent over the previous year. This amount will be spent on internal services, software, IT services, telecom services, and data.

Challenges involved