The Data Center IT power capacity is expected to reach about 800 MW during 2021-2024, progressing at a CAGR of 16 percent, and the revenue progressing at a CAGR of 8 percent to reach $4 billion by 2024, said a report.
In its report on data center, consulting firm Praxis Global Alliance attributed the growth to the rise in the adoption of smartphones and increased access to internet-related services over the last decade.
“Data center capacity is expected to witness significant growth over the next five years with new technologies like 5G and Edge computing along with new demand drivers such as autonomous vehicles, connected devices, etc. All these would push the demand for data centers,” said, Savio Monteiro, Senior Vice president, Infrastructure, Praxis Global Alliance.
The report said that in India, data centers are used by large customers across industries such as Information Technology (IT), Banking, Financial Services and Insurance (BFSI), Ecommerce and Social Media which require storage of a large volume of customer data and together contribute to 75-80 percent of the total data consumption. However, data consumption in India on a per capita basis is far lower than its Asian and Western counterparts.
The report said that data centers' growth in terms of IT power load capacity has witnessed a robust 18 percent CAGR between 2007 and 2020, reaching about 432 MW; in terms of real estate capacity, it has witnessed 13 percent CAGR growth during the same period.
Overall, data enter revenues are expected to clock about $4 billion by 2024; while the IT power load capacity is expected to continue growing at a CAGR of almost 16 percent during the same period, the Indian data center industry attracted around $238 million worth of private equity investments in 2020.
The report also said that the top 8 data center players account for above $6 million sq. ft; while Mumbai currently accounts for about 50 percent of all Data Center building space in India.
According to the report, the demand for hyper-scale data centers is growing rapidly and captive Data Centers are moving towards third-party Colocation (Colo) type Data Center business models. Domestic players are witnessing a CAGR growth of about 20 percent.
Praxis also said that India's draft Data Center policy aims at creating a sustainable ecosystem for Data Center players with supporting infrastructure and skilled manpower availability. Upcoming technologies related to the Internet of Things, artificial intelligence and machine learning, predictive maintenance, and big data would increase the demand for Data Centers.
“Data proliferation over the last few years has created significant demand for Data Centers. Key segments such as Social media, eCommerce, BFSI, etc. have led to the growth in data consumption. COVID-19 has further increased digital adoption and hence the demand for Data Centers will continue to be on a growth path, making it the sunrise of a new era in global infrastructure,” said Aryaman Tandon, Practice Leader, Infrastructure, Praxis Global Alliance.