Global Data Centre and India

  Jun 28, 2020

Global Data Centre and India


  1. India’s data centre market is likely to reach $4 billion against the US’s $69 billion by 2024.
  2. The global data centre market is expected to grow by $284.44 billion during 2019-23, according to market researcher Technavio.

Why data centres are important?

  1. Data centre parks can be a part of a strategy to leverage the opportunities offered by a data-driven economy.
  2. With close to 450 million Internet users and more than one billion mobile subscribers, the data centre sector in India was cited as one of the fastest-growing in the world with demand outstripping supply.
  3. Data is the new oil, one who controls data will control the world development.

What are the problems being faced by data centres in India?

  1. There is no large-scale foreign investment in data centres in the country. 
  2. There is no policy or framework on how these global data centres hubs can be created in India.
  3. Setting up data centres in India can be challenging considering costly real estate, high power consumption and heavy expenses on improving wide area network connectivity.
  4. Finding the land, working with local authorities and having uninterrupted power supply are some of the challenges that data centre companies face. 
  5. They have to work with different regulations specific to different states and cities.

Whats the recent Budget proposes?

  1. Policy to enable the private sector to build data centre parks throughout the country.
  2. Proposal aimed at making it easier for foreign investment in data centre campuses, and will  seek to decrease the paperwork and taxes associated with data centre development.