Service Sectors Favour the Growth of Data Center in India

Those days are no more when Indian economy was depending on the growth of traditional sectors like textile, manufacturing and agriculture. The emergence of information technology (IT) and services related to IT have stood as a significant contributor to India’s GDP. Since the liberation in the 90s, this sector has been succeeded in overshadowing other sectors when it comes to contribute immensely to the overall growth of India.

To meet the digital needs of masses and to maintain the growth trajectory of ever growing sectors of IT, telecom and banking, the support infrastructure needs to be deployed. Data center, a need for today’s evolving businesses, has been the central protagonist in this growth story.

Influx of IT activities, rapid hike in Internet population, second largest wireless network, remodeled banking sector have all contributed to the cause of data explosion, thereby shaping the need for data centers in India.

The prosperous market of data center in India is sought after for manufacturers, suppliers, consultants and others with vested interests. If reports are to be believed, data center in India also draws the attention of Government agencies because of its attribute of being data intensive.

According to Gartner, Indian data center market would witness continuous growth through 2016 and would grow to $1.3 billion, with a Compound Annual Growth Rate (CAGR) of 21.23%. The research firm also indicates significant increment in data center capacity, which was around 1.3 million square feet in the year 2007 and would reach 6.6 million sq. feet in 2016, with service providers contribute immensely to the growth of data center in India. Findings from Gartner study reveal that:

  • Data center market in India is expected to grow speedily
  • Growth trajectory of data center and hosting market continues unabated
  • Banking, Financial Sector & Insurance, IT and ITES, telecom and social media have also triggered the growth of data centers in India
  • Initiatives taken by the Government to eradicate paper for maintaining records have encouraged investors to invest on data centers.
About Sanjay Poddar (28 Posts)

Sanjay Poddar is a prolific writer whose in-depth knowledge on tech sector and curiosity to explore the unexplored has helped him to become an asset to the company. Apart from technology, he has covered various domains that he is keen to explore.


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