The Indian data center industry in 2020 is certainly poised for growth; the industry seems to be on a stream to exceed the industry forecast of $4 Billion for 2020 as reported by various industry commentators and marketers.
The aggressive building plans for data centers in key locations are causing concern as land costs continue to rise and the availability of power is a constant struggle. Further, India is dominated by the colocation data center segment, which is the fastest area of growth for the data center industry. The growth is being fuelled by the global hyperscalers (AWS, Microsoft, Oracle, Google) requiring evermore space/capacity to support the Indian market demand.
Colocation data center is also benefitting from strong growth in companies wanting to relocate their own data centers within the colocation facilities and the adoption of cloud services, either gateways to global Cloud Providers or colocation data centers ability to offer their own cloud hosting and services to their clients. This trend is already seen in the US, Europe and parts of Asia and now, it is wide-spreading into India, as the country is being transformed as the Research and Development hub for many global Technology and Pharma companies. The other driving force of the trend is the expansion of the financial industry and government services at a fast pace.