Like the digital adoption has shown significant growth, data center in India has seen its maximum rise simultaneously. It touched $1.2 billion in the year 2020 and is further expected to touch the limit of $4.5-$5 billion in the coming two to three years.
There is still a big room for growth as the IT load capacity of India is still at 5-6W per TB which is almost 20 times lower than other saturated markets of the world like China.
The structural building cost of a data center in India is lower than in other countries. It costs 10-15% less costly to build a data center in India when compared to countries like China and even less expensive than the rates in the US or Japan.
Now you can very easily guess the potential that India holds in the rate of digitalization. But the question is that how we will facilitate this growth? And will our infrastructure allow us to support such unprecedented growth?
Here are some changes that need to be implemented in the Indian data center market-
- By Data center market segmentation– A converged and hyper-converged infrastructure can bring some stability in the surge of digitalization demands. Such an infrastructure that properly segmentizes IT, electrical, mechanical, etc. Is needed to support cloud and heightened workloads.
Now companies demand data centers that are built on reduced space with undivided efficiency. For this, they are adopting server infrastructure established on the OCP I.e., Open Community Designs.
- By modifying our cooling systems– Many of the major metro cities in India that hold the major share of the data center market go through water scarcity. This further presents challenges in the water-based cooling systems within the data centers.
This brings us to apply alternatives in the cooling systems. The best cooling systems that have emerged out in recent times are the air-based cooling systems. The data centers located in the cold regions of the country have switched to free cooling chillers. These cooling systems take full advantage of the natural lowered temperature.
- By adopting hyperscale data centers– Hyperscale data centers are the solution for India if it wants to support the continuously rising digital growth. Hyperscale data centers are enormous and thus have no limitation on the amount of data storage space. They allow big organizations established in the country to scale up their digital capabilities and keep on growing.
Hyperscale data centers pose no additional costs when businesses want to scale up their operations. They just pay for the capacities they are utilizing within the hyper-scale data center. So, it eliminates the need of modifying the cloud infrastructure every time a company scales up.
- Incentivizing data center companies– Developed countries like the US offer low sales tax and property tax rates. This accounts for affordable power infrastructure, electricity, and equipment. Also, in some countries data centers can claim tax reimbursements for creating high-wage jobs.
India can also adopt such measures that will instantly accelerate the data center services growth. Like Sweden here also, Government can cut down the electricity tax rate by 90% approximately.
- By catering to diverse buyers– There are broadly 3 major groups of data center buyers. These are retail buyers, wholesale buyers, and hyper-scale buyers. Among these retail buyers lease just 10-15 racks, while wholesale buyers lease 50-100 racks. But hyper-scale buyers lease an entire floor or so. All kinds of data center buyers deserve seamless customer experience and quality service.
The major discounts are allowed to avail by the hyper-scale buyers only. But the retail and wholesale buyers must also be motivated with good discount offers.
With the increasing opportunities in the data center market, the competition among the players is getting intensified. In the middle of this competition, they are forgetting to build a mutual relationship with their consumers.
Apart from these changes required, the Indian data center market has evolved a lot in terms of efficiency, flexibility, and scalability. They are also working in the direction to reduce CO2 emissions and water consumption. This all has been made possible due to strong IT and support infrastructure and plenty of data center investors.
The policies of a country cannot change in a day, but we can hope for a better future for the data centers in India.
Meanwhile, you can sign up for our Tier 3 data center services. For other data center-related queries, you can contact us.