India Data Centre Market is expected to see significant growth in future.

1. Analysis & Outlook
India Datacentre Market 2013 –Significant growth expected till 2016
Data Centres are facilities that house computer systems and store data - are of two types captive
(firms setting up centres for their own use) and third-party (outsourced).Data centres market in
India is seeing a good growth since past few years thanks to the explosion of data through
smartphones, social networking sites and ecommerce companies. Even Government of India
have initiated projects like Aadhar Card project by Unique Identification Authority of India,
digitization of Land records, citizen services, etc. are also increasing the demand for data centres
in India. In India market is dominated by third-party data centre providers like Netmagic, Tulip
Telecom, CtrlS and telecom firms Reliance, Tata Communications and Sify that provide services
to internet companies like Yahoo, Ebay, Flipkart, Myntra, etc.According to Nasscom, India’s
data centre market was at about $2.2 billion in 2012 and is estimated to grow by more than 8%
over the next 3-4 years. The current data centre space available is India is about 3.7 million sqft
as of 2012-end and is estimated to rise to 6.3 million sqft by 2017, said Naresh Singh, Principal
Research Analyst with Gartner, with service providers leading majority of the growth. In terms
of market size, it is projected to grow to $3 billion (Rs 16,320 crore) from $2.2 billion (Rs
11,960 crore) in the same period. Data centre capacity is concentrated across certain cities such
as Bangalore, Mumbai New Delhi and Hyderabad.Gartner valued the colocation and hosting
market in India at US$609.1m in 2012 and by 2016 it will be worth $1.3bn.
The Date Centre Dynamics Intelligence Industry Census data collected in 2012 shows that
investment in India’s data centre market was expected to reach US$4.4bn in 2012, up from
$4.1bn in 2011 (China investment for 2012 was expected to be $8.7bn and Brazil’s $5.5bn). In
India, this represents 1.21m sq m of data centre space being built – up from 0.76m sq m in 2011,
and a power demand of 1.04 GW in 2012. A report by Frost & Sullivan which predicted that by
2018 there will be almost nine million square feet of data centre floor space — a three-fold
increase from current levels. Most of the demand for data centres in India is from IT and ITenabled service firms, banking and financial services sector, telecom companies, Internet service
providers and consumer goods firms. The Indian IT infrastructure market, comprising of server,
storage and networking equipment, will total $2.1 billion in 2013, growing 9.7 percent compared
to 2012, according to Gartner, Inc and market is driven by hardware refresh, optimization and
consolidation efforts and new data centre build.But the industry is facing severe problems like
unpredictable power supply which will lead to shutdown of datacenters that costs in terms of
money and data loss, unreliable internet connectivity, limited bandwidth and unreliable optical
fiber connectivity between different parts of the country. Despite these problems the demand for
data centres in India is expected to grow because of the national e-governance projects by
Central and State government and prospective changes in regulations by Reserve Bank of India
planning to make it mandatory for data to reside within the geographic boundaries of the country.
Even Indian companies are looking to increase the usage of Third Party Data centres as they also
need to store data that they are collecting during their business activities and use such data for
business decision making.
Rajesh Prabhakar
Analyst Bio @ http://itbizcharts.blogspot.com/