Why Data Centers Are Critical to India’s Digital Growth?

India is undergoing a digital revolution, and at the heart of this transformation lies one essential yet often overlooked engine—data centers. As smart devices multiply, cloud computing accelerates, and internet usage crosses 1.1 billion wireless subscribers, the demand for secure, scalable, and reliable data storage infrastructure has never been higher. From powering real-time transactions and AI workloads to enabling government e-governance services, data centers form the digital backbone that supports everything from fintech to online learning. With the rapid rollout of 5G, explosive growth in digital payments, and the rise of deep-tech start-ups, India is emerging as one of the world’s fastest-growing data center services markets—and the next few years will define its trajectory.

India’s Data Center Market Size and Growth Projections

The data center market in India is currently valued at INR 82 billion, with around 85,000 racks for co-location, and is projected to grow at a compound annual growth rate (CAGR) of 21.4% from fiscal year 2020 to fiscal year 2024. The market in the future is expected to grow at a CAGR of 19.7%, from INR 82 billion in fiscal year 2024 to INR 240 billion in fiscal year 2030. As of 31st March 2024, the total data center installed capacity in India is 1050 MW, and the total utilized capacity in India for data centers stands at 850 MW.

Market Segmentation for India’s Data Center Industry by Major Cities

As of 31st March 2024, India’s current data center capacity stands at 1,050 MW, with approximately 94% of this capacity concentrated in major cities. Among these cities are Mumbai and Chennai, which lead the sector. Mumbai alone accounts for 48% of India’s total data center capacity, supported by its strategic submarine landing stations, infrastructure for power and fiber optics, and significant demand from the banking, financial services, and BFSI sectors. Meanwhile, Delhi and Kolkata serve as the primary locations in North and East India, catering to regional enterprise demand, with Delhi anticipated as a significant player with substantial capacity additions on the horizon.

Along with this, data centers are experiencing significant growth as they expand into Tier-2 and Tier-3 cities, driven by advantages and increasing demand for digital infrastructure. Cities such as Nashik, Kochi, and Jaipur are becoming key players in this expansion. Leading companies like ESDS Software Solution Limited are actively pursuing opportunities to establish their presence in these smaller cities.

End-user Segmentation by Industry

The data center market is characterized by a diverse range of end-user sectors, with the Banking, Financial Services, and Insurance (BFSI) sector leading the way, accounting for 45% of total revenues. Enterprises follow closely, representing 35% of the market, driven by their increasing reliance on cloud services and digital transformation initiatives. The government sector contributes 15%, focusing on e-governance and secure data management, while other sectors collectively make up the remaining 5%. This distribution highlights the varying needs and priorities of different industries in leveraging data center capabilities to support their operations. Players with a well-diversified presence across multiple industry segments have already built a strong foundation in the Indian data center and cloud market.

Types of Data Centers

Below is the list of data centers as shown below:

  • Managed Data Centers—Combines co-location services with managed IT support, allowing businesses to rent space for servers and outsource infrastructure management to specialized vendors. It helps businesses focus on core activities without IT management burdens.

Key Benefits:

  • Expert management of IT resources.
  • Flexible scalability
  • Focus on strategic initiatives
  • Reduced IT management burden
  • Colocation Data Centers—Provides physical space to house servers and networking equipment, offering power, cooling, security, and connectivity. This model allows businesses to share infrastructure costs while maintaining control over their hardware.

Key Benefits:

  • Enhanced security measures
  • Cost savings on infrastructure investments.
  • Improved interconnectivity with network providers.
  • Hyperscaler Data Centers—Large-scale facilities supporting data processing, computing, and storage services for major organizations.

Key Benefits:

  • Extreme scalability
  • Cost efficiency through economies of scale and performance infrastructure for rapid growth.

Conclusion

India’s growing digital economy relies on the strength and scalability of its data centers. From metro hubs to emerging Tier-2 cities, data centers are expanding infrastructure to support the surge in demand. Organizations like ESDS Software Solution Limited offer data center colocation data center services, allowing businesses to securely house their own IT infrastructure while benefiting from redundant power, cooling, and high-speed connectivity. This is ideal for businesses needing physical control over their hardware while leveraging a professional Data Center environment.

How to Choose the Right Data Center Services Provider in 2025?

In 2025, the growing demand for the data center provider industry will still be expanding at an incredible rate. The worldwide data center provider market is anticipated to grow at a 15% CAGR through 2027, based on developments that are presently being built and those that are planned. This is our baseline prediction, with a 20% CAGR through 2027 as an upside possibility. Despite its fast rise, the industry faces several possibilities and problems.

New technology is opening up possibilities for wealth generation and long-term growth. Other major issues facing the industry include electricity shortages and rising demand that is outpacing supply. This paper looks at the significant problems that the global data center industry is currently facing and makes forecasts for the coming year.

Before diving into choosing the right data center providers, first let’s look at the key highlights that are going to be there in 2025 related to artificial intelligence and liquid cooling.

  1. Artificial Intelligence: AI is finding more and more uses in almost every industry. Several billions of dollars have been invested in AI during the past few years.
  2. Liquid Cooling: Liquid cooling will be a practical solution and a chance to boost asset value for current facilities moving to higher-density workloads.

Key Highlights:

  • In 2025, artificial intelligence (AI) will still be gaining traction. The data center sector is at the start of a revolutionary period, propelled by AI’s unrelenting development. Over the past few years, billions of dollars have been invested in AI, which has increased demand for data center infrastructure.
  • SMR announcements will pick up speed in 2025, and the total gigawatts will probably double. As the need for energy grows, nuclear power is becoming the go-to option. The industry is investigating both conventional large-scale nuclear power and small modular reactors (SMRs) since conventional electricity systems find it difficult to keep up.
  • It will be necessary to switch to liquid cooling in order to support GPU developments. Liquid cooling infrastructure has rapidly taken over as the standard installation in new projects. Liquid cooling will be a practical alternative for current facilities moving to higher density workloads, providing owners and investors with an opportunity to improve their assets.
  •  In 2025, $170 billion in assets will need to be secured for development or long-term funding. Development finance will offer investors a strong chance to get exposure to the industry, even though investment transaction volumes are only expected to slightly expand in 2025 because of large bid-ask spreads and a dearth of accessible products.

The capacity of data center providers worldwide is expected to increase by 15% annually, but this will not be enough to satisfy the rising demand.
2023–2027 data center capacity (gigawatts)

As businesses increase their data usage and rely on data center services to support their expansion, choosing the best data center provider can be difficult. Businesses of all sizes can choose from a variety of data centers, so choosing the right one requires considerable thought and confidence.

7 steps You Need to Consider While Choosing a Data Center Provider

Selecting the best data center provider is essential to guaranteeing the scalability, security, and dependability of your IT infrastructure. Here are some important factors to think about before choosing your choice.

  • Location

When selecting a data center provider, location is crucial for a number of reasons. First, think about how easy it is for your staff to get to the site, particularly for maintenance or equipment upgrades. Location-related delays or inefficiencies can be expensive. Additionally, assess the region’s susceptibility to earthquakes, tornadoes, floods, and hurricanes. Although data center providers typically take these hazards into consideration, it is advisable to confirm the facility’s readiness.

Lastly, we’ll go into greater detail about the network and customer ecosystems, but first we’ll make sure the data center has enough power and numerous fiber channels for connectivity.

  • Power Cooling

Because outages are expensive, it is essential to guarantee continuous electricity and efficient cooling systems. Implementing a multi-path configuration for redundancy is the ideal course of action, as it allows for seamless system replacement in the event of a failure.

For client equipment to operate at its best, data center server cooling is essential. This could entail cutting-edge methods like cold-aisle containment, free air cooling, and deep lake water cooling, among others.

  • Security Measures

Your business depends on your data. When hosting it somewhere else, be sure the supplier adheres to SOC 2, SSAE 18, and HIPAA laws and employs excellent security measures. The building should have strong physical security, which includes alarms, monitoring, access controls, and several levels of protection. To identify and notify you of any possible emergencies, sophisticated monitoring systems must be installed.

  • Scalability & Flexibility

Choose a service that can adapt to your changing needs in order to fulfill your short-term and long-term goals. While some data center providers give pre-made systems, others provide more adaptable and configurable choices.

Check if more resources, such as power, space, and connectivity, are available. Don’t let a provider who isn’t scalable restrict the possibility for expansion of your organization.

  • Cost

Find out how much power, cooling, and network connectivity will cost each time you host equipment at the colocation data center. Additionally, note any one-time infrastructure setup costs. Make sure that network connectivity and server power are covered by these fees.

Furthermore, for a cost, certain data center providers in India may provide additional services like equipment installation or remote hand help. Take into account the data center’s dependability and service quality while assessing expenses.

  • SLA, uptime, compliance and certifications

Assessing a potential data center partner’s demonstrated track record and committed service standards is essential. Although 99.99% uptime SLAs are provided by many data centers, others may go above and beyond. 

Verifying a data center’s providers dependability, security, and regulatory compliance requires independent audits and certifications, particularly for the government, financial services, and healthcare industries.

  • Customer Support

More than just more room and faster speeds should be provided by data centers. A first-rate facility has committed, knowledgeable support staff on hand around-the-clock to answer inquiries and fix problems.

Conclusion:

Choosing the right data center provider is a crucial decision that can significantly affect the success and expansion of your company, regardless of whether you’re just starting your search or switching from another provider. By considering elements like location, data center security, scalability, flexibility, dependability, network connectivity, on-site assistance, customer service, and SLAs, you can make decisions that will satisfy the demands of your organization and its long-term objectives.

ESDS is one of the leading data center management organizations in India that provides services to assist and safeguard your IT infrastructure while you search for the finest data center provider. You can rely on us to support the digital success of your company because we prioritize security, dependability, and scalability.

Ready to find the perfect data center provider for your business? Contact ESDS Software Solution today to explore our secure, scalable, and reliable data center solutions

Data Centers: The Engine Behind India’s Digital Revolution

In today’s tech-driven world, companies rely on digital systems, making data center services crucial. These centers form the backbone of our digital economy, letting businesses across sectors store, process, and handle data and information without a hitch. From top-notch security to cutting-edge management tools, data center providers in India are changing their approach to keep up with new needs.

Going digital doesn’t just boost economic growth in all industries. It also paves the way for better public services more social and financial inclusion higher productivity, and a more connected society. Experts predict India’s digital economy will hit about $1 trillion by 2025. The government has helped improve the business environment for data center operators and developers. They’ve done this by giving data centers infrastructure status and introducing the Draft Data Centre Policy in 2020.

Let’s take a closer look at what data center services involve, check out the top providers in India, and see how they play a key role in the digital world.

What Are Data Center Services?

Data center services cover a wide range of solutions to ensure smooth operation, protection, and oversight of data center infrastructure. These services include:

1. Colocation:

  • Allows companies to lease physical space in a data center for their IT equipment.
  • Provides flexibility and lets businesses control their hardware and software.
  • Makes sense for organizations that need critical hardware or have high-security needs

2. Managed Services:

  • It involves hiring outside help to take care of IT infrastructure upkeep.
  • Covers things like looking after servers, managing networks, and keeping an eye on security.
  • It helps cut down on running costs and frees up other resources within a company.

3. Cloud Services:

  • Provide computing resources like storage and processing power through the internet
  • Scalable and flexible to adapt dynamic needs.
  • Includes Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS).

4. Cybersecurity Solutions:

• Protection against cyber threats – hacking, malware, ransomware
• Firewall protection, intrusion detection, and data encryption features
• Play a key role in keeping sensitive information safe and businesses running

5. Network Connectivity:

• Ensure the transferring of data without failure at all times waste. High-speed network connections.
• Dedicated internet access, MPLS network, and SD-WAN solutions.
• Essentially, it is necessary for businesses with remote offices or global operations.

In India, adopting technologies like IoT, AI, and big data analytics has increased the demand for these services. Businesses require robust and scalable infrastructure. In such a situation, the role of companies involved in data center management is a must.

Data Center Services in India: An Overview

Data centers are booming worldwide, even with some challenges. India stands out in the APAC region, with the biggest data center capacity of about 950 MW. This beats major countries like Australia, Hong Kong SAR, Japan, Singapore, and Korea, as a CBRE report shows.

India’s set to grow the most in the region, adding around 850 MW from 2024 to 2026. This boom highlights India’s strong points in the data center field. For instance, low-cost land, skilled workers, good transport, and a steady power supply are drawing big investments from tech leaders. Microsoft, Google, and Amazon are building massive data centers in the country. India has become a global hotspot for data center services. Many companies are putting money into top-notch infrastructure. The country’s helpful policies, which allow more people to use the internet, and a growing digital economy are pushing this sector forward.

Key Features of Data Center Services in India:

  1. Cost Efficiency: Affordable solutions tailored to meet diverse business needs.
  2. Strategic Locations: Data centers located in regions with low latency and high connectivity.
  3. Green Initiatives: energy-efficient technology adoption to reduce carbon footprint.
  4. Compliance and Standards: Observance of international standards such as ISO 27001 and GDPR.

Top Data Center Management Companies in India

There are numerous data center management companies in India offering top-notch services. The companies ensure the facilities are operational, minimize downtime, and deliver maximized performance. 

The best among them is:

  1. ESDS: A Pioneer in the Indian Data Centre Industry, ESDS offers a one-stop-shop solution for cloud, IT security, and managed services. With security and reliability as top priorities, ESDS enables businesses to undergo digital transformation.
  2. CtrlS: CtrlS stands for world-class data centers at global standards and offers excellent colocation and managed services. 
  3. Sify Technologies: Sify is also an Indian provider of data center and network services that offer cloud computing, cybersecurity, and disaster recovery, among several other solutions.
  4. Yotta: Yotta is India’s leading data center and cloud services provider that offers managed services, cybersecurity, and disaster recovery.
  5. Web Werks: One of the most influential players in the Indian data center market, offering reliable and scalable colocation and cloud services.

Importance of Data Center Security

With the rise in cyber threats, ensuring the security of data centers has become paramount. Data breaches can lead to severe financial and reputational damage, making security a top priority for service providers.

Key Components of Data Center Security:

  • Physical Security: biometric access controls, surveillance cameras, and secure perimeters.
  • Cybersecurity Measures: firewalls, intrusion detection systems, and regular vulnerability assessments.
  • Data encryption: protecting data both in transit and at rest.
  • Disaster Recovery Plans: Ensuring business continuity in case of disruptions.

Data center security involves protecting physical assets, safeguarding critical business information, and ensuring compliance with regulations.

Data Center Servers and Their Role

Servers form the core of any data center. They process data  , store applications , and manage the network traffic.

Advanced, high-powered data centers deploy advanced servers with cutting-edge processors, large amounts of storage, and efficient cooling to handle growing workloads.

Benefits of Advanced Data Center Servers:

  1. High Performance: Faster data processing and reduced latency.
  2. Scalability: ability to handle growing data volumes.
  3. Energy Efficiency: Reduced operational costs through optimized power usage.
  4. Reliability: minimizing downtime and ensuring continuous operations.

The Future of Data Center Services in India

With the help of future technologies combined with more digital adoption, the prospects of the data center service in India seem bright.  The key trends influencing the data center industry are:

  • Edge Computing: Processing data closer to the source to reduce latency.
  • Artificial Intelligence and Machine Learning: Leveraging AI and ML to optimize data center operations.
  • Sustainability: Pursuing green practices to minimize environmental footprint.
  • 5G and IoT: supporting the growth of connected devices and real-time applications.

Conclusion

While data centers will remain a concentrated industry in tier-I locations, the market has observed a significant move, with most colocation and edge computing facilities entering tier-II and tier-3 cities. The understanding behind this expansion is to be closer to their customers, provide faster response times, lower latency for applications requiring it, and decentralize DC infrastructure to effectively cover a distributed user base in India.
Cities such as Kochi, Jaipur, Ahmedabad, Lucknow, Patna, and Vishakhapatnam are emerging due to their strategic positioning and better infrastructure, particularly in power supply and improvements in fiber and cable connectivity. 

The Indian data center sector is likely to witness significant growth over the next couple of years, with increasing stakeholder focus on Tier II and III cities, sustained occupier interest, a growing talent base, and the strengths of the country as a hub for technology, R&D, and shared service platforms.  This will help boost capacity expansion in the country and increase India’s standing as one of the world’s premier global hubs for data centers, a place for innovation, and a potential source of huge international investment.
The rise of the digital economy has made the role of the data center even more crucial. 

Data centers’ task at hand is to ensure safe security and innovative management solutions, and Indian service providers have been on the leading edge of this change. Companies like ESDS are first in line with advanced infrastructure, a customer-centric approach, and a sustainable commitment.
Whether you are a small business or a large enterprise, you should take your success with reliable data center services in today’s digital-first world. You can, therefore, be sure that your data management needs are in good hands with ESDS as your partner.

Data Center Services for Growth Enhancing Scalability and Security

Data consumption has significantly increased due to the large increase in digital adoption across industries, which has strengthened India’s economic growth. The current economic boom shows how businesses are becoming more and more reliant on virtual solutions, which makes robust data centers necessary. Future growth in this need for data will drive advancements in the existing state of data infrastructure, which must address security, scalability, and performance issues brought on by today’s new workloads.

Data Center Market Growth Revenue in 2024

According to Statista, the data center business is predicted to earn $8.65 billion in sales by 2024.
The market is led by network infrastructure, which is estimated to reach $5.93 billion by 2024. Revenue is expected to rise at a compound annual growth rate (CAGR) of 6.50% by 2029, with a market volume of $11.85 billion. Globally, the United States will generate the majority of revenue (US$123.20 billion by 2024).

Overview of Data Center in India

In both developed and emerging nations, the data center sector has grown significantly. This is because businesses are becoming more ready to spend money on new infrastructure for data deployment and storage. In the age of digitalization, the data center industry in India is expanding rapidly. The country is well-positioned to become a global hub for data centers, especially those focused on cloud computing, and has a bright future ahead.

The top seven cities in India now have data centers with a combined capacity of 977 MW, according to a survey by Cushman & Wakefield. It is anticipated that India’s data center capacity will increase significantly in the future. By 2028, the capacity expansions now under development are predicted to reach 1.03 GW.

ESDS Major Player in the Indian Data Center Market

ESDS Colocation Services provides enterprises with cutting-edge data center capabilities, ensuring 99.995% uptime with 2N+1 redundant UPS systems and controlled diesel generators. Clients benefit from two Power Distribution Units for accurate monitoring and remote management via KVM-IP, as well as scalable power solutions ranging from 4KW to 40KW rack. Advanced safety features include precise air conditioning, VESDA smoke detection, and fire suppression. Additional advantages include no-cost installations, proactive monitoring, and performance assessments, which ensure ongoing peak performance and business continuity.

Cloud Integration: Enhancing Flexibility and Scalability

Cloud computing is revolutionizing the IT infrastructure of most businesses. It brings high-quality integration services to the data centers, allowing all organizations to connect their in-house systems with cloud environments simply. Integration services offered by these enable companies to be flexible in how they handle workloads and scale resources on demand without heavily investing in physical data center servers.

Hybrid clouds are currently becoming more prominent in the enterprise world simply because they offer the best of both worlds – namely, private and public clouds. This model provides an opportunity for enterprises to handle sensitive workloads on the private clouds while enjoying the economies and scalability benefits of public cloud resources. This integrated environment helps IT professionals reallocate workloads dynamically, optimize resource utilization, and, hence, enhance overall efficiency.

Data Center Security: Ensuring Protection and Compliance

As corporations increasingly store sensitive data, data center security is taking a huge chunk of focus. Data breaches, cyberattacks, and regulatory compliance are cited by C-level executives as the most significant reasons why data security remains pivotal in the management of a data center.

A better data center provider has a strict type of physical and digital security implementation to protect data and IT infrastructure. Physical would include general surveillance 24/7, biometric access controls, and also redundancy in power and cooling systems to ensure no downtime. The digital involves advanced firewall systems, intrusion detection, encryption, and continuous monitoring. Only these will quickly identify threats so that there is faster neutralization.

Any reliable data center provider must adhere to industry standards like ISO 27001, SOC 2, or GDPR. These requirements ensure that the operations of a data center are stringent regarding security and that their customer’s data is delivered with the utmost care. Besides, secured data transmission over the Internet and proper policies of network security always help to reduce the risks associated with cyberattacks or data breaches.

Colocation Services: Optimizing IT Infrastructure

One of the best solutions for organizations that want to reduce their capital expenditures without controlling their IT infrastructure is colocation services. Colocation allows companies to maintain their servers and all their associated hardware within a third-party data center, thereby enabling them to access world-class facilities devoid of the sunk costs or maintenance costs of a company’s data centers.

Colocation allows an organization to use the infrastructure of the data center, be it in the form of robust power supplies or cooling systems and high-speed network connections, while retaining ownership of its hardware. This approach also allows for the flexibility of growing up in response to changes within the needs of the business without requiring any other investment in physical space or resources.

Disaster Recovery Solutions: Safeguarding Business Continuity

Business continuity is aimed at recovery from unexpected disruptions, and disaster recovery services from data centers help protect organizations against data loss to help the business regain normalcy after a disaster.

Disaster recovery as a service encompasses strong solutions like automated backup, real-time replication, and geographic redundancy. Data centers adopt both recovery point objectives—which measure how much data could be lost if the failure happens—and recovery time objectives—which outline how quickly systems should recover to their operational power. These metrics determine that businesses will operate with minimum downtime, so the disasters will have little revenue impact and customer satisfaction.

Conclusion

Today, no business can afford to overlook robust data center services, be it cloud integration, data center security, colocation, or disaster recovery. It is thus advisable that businesses select a reliable data center provider and maintain agility, security, and resilience. A scalable, secure, and efficient IT infrastructure will be pivotal to growth in the not-too-distant future.

Find out how ESDS data centers in India are changing the game for business resilience and scalability with cloud integration, security, colocation, and disaster recovery solutions. India Ka Apna Cloud-powering, the cutting-edge technology offered by ESDS, gets to the very specific needs of Indian businesses: this uniquely catered requirement ensures compliance, data sovereignty, and higher security.

Data Center Predictions for 2022

Data Center services

The outburst of the ongoing pandemic in late 2019 and throughout 2020 & 2021 forced various CIOs from different industries to enhance their focus towards gaining operational agility. To remain competitive in their business domains, it is getting inevitably essentially important for a business to adopt Digital Transformation & prioritize their technology trends, such as Data Center Services. Apart from the technological front, CIOs and business heads also must emphasize talent retention & improve business relationships with their stakeholders. Various top Data Center providers have time and again highlighted the challenges associated with Data Center growth &  the role of Data Center Solutions in creating a digitally ready futuristic society.

Data Center Predictions for 2022

Impact of Pandemic on Demand for Data Centers in India

The outcome of an IT spending survey suggests more than 65% of enterprises of Indian enterprises have understood the benefits of opting for a Cloud-based service to acquire new clients, serve the existing customer base & gain profitability. About 81% of corporate organizations have adopted Cloud Services owing to the pandemic as the implementation of work from home culture got predominated. During the first quarter of 2020, the spending of enterprises on Cloud infrastructure enhanced by ~35% compared to Quarter 4 of 2019 (Source: Ken Research).

Data Center Services in India.
Source: Interview with Industry Experts and Ken Research Analysis

The research clearly inferred that the pandemic served as a blessing in disguise for Data Center Services in India.

Expected Trends in Data Center Industry

1. Growth of Edge Computing

Recently, there has been a multi-fold demand for highly available & low latency networks, with end-users demanding digital content services. Organizations aim to enhance their IT flexibility by providing an improved customer experience. End-users are also looking to use Colocation Data Center services to out-grow their edge computing capacities in their core areas. Instead of having a centralized repository for all their assets, enterprises look to create diversified network data that remain closer to their end-users. Edge computing offers users high-performance networks for their work-related requirements.

2. Growth of Small Data

Small Data is usually linked with edge computing in applications demanding lower latency. Small data infrastructure boosts a faster analysis for all those data that demand high availability & bandwidth. It is important to understand that small data doesn’t eliminate Data Centers; rather, it facilitates their usage since edge computing processes data locally. Overall, this boosts the need for applications with low latency, connecting devices to colocation Data Center providers. Thus, it is clear that there will be a broad-scale adoption of devices that will use Small Data capabilities in the coming years.

3. Resiliency & Uptime Continues to Be the Core Focus Area

Assuring maximum uptime for hosted critical applications & data is always the top priority for any Data Center services provider. However, maintaining uptime has been a challenge as more companies are now opting for a hybrid infrastructure, involving backup and failover strategies, including Cloud, Colocation & on-premises facility. On the operational front, users continue to optimize their IT infrastructure to match with any failure or outage, with its impact depending on the Data Center provider.

4. Accelerated Investments in Regional Markets

The influx of global capital has increased digital infrastructure growth in all regions. Much of the capital investment is being made by adding more Data Center Services across major Data Center market chunks. In 2022, there will be a deep penetration of some best Data Centers within Tier 2 & Tier 3 cities due to localized users’ data hosting & security needs.

Indian markets have witnessed an increased focus on Data Recovery & Disaster Recovery Management services being offered by leading Tier 3 Data Centers in India, driving the expansion of the market across different cities. High penetration of OTT in the rural market has resulted in an increased need for Data Centers Services in India.

Below is the illustration depicting the details of upcoming gross space Data Centers by region (in India) based on new space additions (in %). This is from March 31, 2020, to March 31, 2025.

Data Centers Services in India.
Source: JLL, Industry Articles, Interview with Industry Experts, Ken Research Analysis

5. Liquid Cooling Data Centers

The Data Center industry is continuously changing its focus to adopt liquid emersion cooling Data Centers. In the coming year, significant advancements will be made in this direction due to reassessed cooling demand for avoiding usage of excess water for cooling hardware.

6. Cloud Diversification: Emergence of Multi Clouds

Today, Enterprises don’t rely on a single Cloud Provider to manage their technological needs. Instead, they tend to avail services of a single Cloud provider, often termed as Multi-Cloud. With Multi-Cloud, enterprises enhance their capability to transform their business areas completely. Enterprises can migrate, modify & redeploy their workloads with different Cloud providers and address the changing needs of their customers.

7. Microgrids

The concept of Microgrids is becoming a notable trend as a notable on-site generator within the premises of some best Data Centers. With microgrids in place, Data Center Services get access to multiple energy sources, ensuring they operate independently of the installed energy grid in case of outages or disasters. Data Center microgrids can be easily integrated with renewable energy sources, resulting in in in lower carbon emissions. Microgrids can be of great significance as the Data Center providers are looking to become green Data Centers through these alternate & clean sources of energy.

8. AI & Automation for Easing Data Center Tasks

The current pandemic resulted in a reduced number of on-site technicians and domain experts who could handle any data center problem. Advanced technologies like AI & Machine Learning can be of great help in remote management & monitoring of Datacenters. Automation could find its best usage for driving infrastructure management using robotics. With huge volumes of data being generated & stored within Data Centers, it will utterly surpass human handling capabilities. Hence, efficient usage automation & AI could result in accurate managing & monitoring of data stored within Data Center hosting. These technologies also have an important role in determining user data patterns & preferences.

Concluding Words

These are only some of the prominent trends that will positively impact the Data Centers, influenced by challenges thrown by the pandemic. With data volumes rising persistently, there might be more disruptions emerging, resulting in enhanced data hosting within Data Center services. Implementation of Advanced Technologies will boost Data Center hosting services by multi-folds.