APN News

  • Friday, April, 2022| Today's Market | Current Time: 05:05:27
  • Mr. Manoj Paul, Managing Director, Equinix India.

    “The data center market in India has seen significant growth. India’s digital push and exponential data growth in the last two years have resulted in strong demand for digital infrastructure. There have already been estimates that the Indian data center industry will surpass USD 8 billion by 2026 (Arizton Advisory & Intelligence) and its cloud computing market will reach a staggering $7.1 billion by 2022 (Nasscom).  As a result of the growing demand for data center services in the country and indicators of favorable policy changes like  the Ministry of Electronics and Information Technology’s policy of granting infrastructure status to the data center sector, many keen investors from both domestic and overseas like Equinix are moving in. We anticipate that India’s share of the international data center market will continue to grow with the favorable policy incentives and support from the Union government.

    However, there are certain challenges in India that need to be addressed in order to become a ‘global data center hub’. India needs a robust ICT infrastructure, with investments in undersea fiber networks linking the country with other nations, between and within cities, and cable landing stations, all of which is vital for a digital economy.

    Over the past few years, India has improved substantially with existing and new carriers laying fiber and offering 100G/200G wavelengths and plans to scale up to 600G/800G. However, there is a need for significantly larger investment to lay additional fiber for an increase in capacity and redundancy. To support 5G deployment, all base stations and mobile towers must be connected over fiber for improving bandwidth availability to users and thereby accelerating growth in data consumption. In addition, investment is also needed to lower the bandwidth costs of connecting data centers across the country. The industry is looking forward to favorable changes in the policies which will encourage new investors like OTTs , cloud service providers and data center service providers among others to deploy new age  fiber networks within the country to meet the growing demand.

    Availability of reliable power is a very important factor which impacts the development of data centers. The data center industry would like to draw attention of the Government towards this and make provisions in the budget  for big investments in power generation and improvement in power distribution infrastructure so that the upcoming demands of 100s of MWs of power for the data centers  can be met efficiently . The industry has also highlighted changes needed in power distribution policies to enable the data center industry to use “Green Power” more effectively and clear roadmap for data protection policy.

    As important as it is for regulations to be developed, there would also be a need to increase the level of investment in next-generation technologies, including artificial intelligence, machine learning, robotics, etc, through policy intervention. These technologies will be the catalysts to drive demand for India’s engineering talent in building core capabilities through industrial researches, and a multiplier for the broader economy.”

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