Transforming Digital Infrastructure with the Data Center Revolution

Data center colocation services in India are experiencing a series of changes fuelled by the rising demand for robust data storage and processing from hyperscale cloud providers, over-the-top (OTT) platforms, content providers, and artificial intelligence (AI) companies. This shift is accelerated by advancements in 5G, Internet of Things (IoT), the proliferation of smartphones, and favourable government policies.

To read on about lucrative growth opportunities in data center colocation services, click here.

As digital infrastructure becomes increasingly vital for businesses across industries, the following headwinds are reshaping the competitive landscape, prompting colocation providers to adapt with agility while focusing on service differentiation:

  • Harnessing Disruptive Technologies: Technologies like AI, machine learning (ML), and big data analytics require substantial computing power/infrastructure, reduced latency, and real-time processing. This is increasing the pressure to invest in high-density racks, innovative designs, and edge architectures.
  • Adapting to Transformative Megatrends: With growing awareness about environmental sustainability, the demand for energy-efficient and green data centers is rising. Consequently, providers feel the urgency to adopt sustainable practices, advanced cooling solutions, and renewable energy sources to reduce their carbon footprints.
  • Combatting Competitive Intensity: The entry of domestic players like Yotta Infrastructure and Adani Group, along with global giants, is intensifying competition in the provider ecosystem. Coupled with limitations of land and power, this is driving the need for aggressive growth strategies to establish long-term competitive differentiation.

Amid these forces, a combination of technological innovation, customer-centricity, and a strong focus on security will prove to be essential for navigating industry complexities. The question that arises is – How will you identify and implement the right data center technologies and best practices to support your organization’s growth goals?

Revealed:  The Growth Potential of Data Center Colocation Services in India
Frost & Sullivan finds that:

  • India accounts for about 92% of the total South Asian data centers colocation services industry.
  • This region is poised to unleash new opportunities worth $3.01 billion by 2028.
  • STT GDC India, NTT Netmagic, Sify Technologies, Nxtradata, and CtrlS Datacenters lead the region in terms of new investments, colocation facilities, and rack space.

Which partnership strategies will help your teams modernize data center infrastructure and capitalize on emerging opportunities in the Indian colocation services ecosystem?

To delve into new prospects in the Indian data centers ecosystem, click here.

India’s Unique Vale Proposition for Data Center and Colocation Service Providers

India’s significance in the global data center industry is growing, making it an increasingly attractive destination for colocation services. By leveraging the country’s demographic dividend along with the following factors, global providers can effectively broaden their regional presence and strengthen their competitive positioning:

  • Burgeoning Digital Economy: India boasts a massive and growing population with increasing internet penetration. Further, the rise of e-commerce, online education, and telehealth are intensifying demand for advanced infrastructure that facilitates digital transformation.
  • Favorable Government Policies: Initiatives like Digital India and Make in India combined with data localization laws and incentive schemes for local infrastructure development are fostering an environment conducive to innovation and growth.
  • Strategic Advantages: Lower real estate and labour costs, coupled with government incentives and subsidies are allowing providers the advantage of cost optimization, while maintaining high service standards. Additionally, the country’s growing fiber optic network and connectivity infrastructure are enhancing its appeal as a future data hub.

Are your strategists equipped to make the most of these advantages and capitalize on the growth opportunities accompanying them? 

Revealed: Emerging Opportunities in Indian Data Centers and Colocation Services

While challenges such as power reliability, infrastructure bottlenecks, and workforce shortages persist, the overall growth trajectory of India’s data center industry is undeniably positive. This is unleashing the following new prospects for providers to better differentiate themselves:

  • Hyperscale Colocation Data Center Services: Harnessing the rise in demand from cloud migration, IT applications, OTT services, and data localization mandates by building scalable, high-capacity data centers with increased power densities.
  • Comprehensive Edge Strategies: Since centralized data centers are less optimal for processing geographically dispersed data from different monitoring systems, providers can establish low-latency infrastructure and edge capabilities for smart city applications like autonomous traffic management, smart parking, and intelligent lighting systems.
  • Sustainability and Green Energy: Leading new initiatives to design more energy-efficient facilities, improve power usage effectiveness (PUE) scores, and reduce carbon footprints, while leveraging AI to identify and address energy inefficiencies.

How will you strategize to take advantage of these growth opportunities while maximizing the return on investment (ROI) potential on your data center investments?

For implementation strategies to capitalize on these growth opportunities, click here.

About Frost & Sullivan

Frost & Sullivan, the growth pipeline company, enables clients to accelerate growth and achieve best-in-class industry positioning in terms of innovation and leadership. The company’s ‘Growth Pipeline-as-a-Service’ provides corporate management teams with transformational strategies and best-practice models that catalyze growth opportunity generation, evaluation, and implementation. Let us coach you on your transformational journey, while we actively support you in fostering collaborative initiatives within the global data centers and colocation services ecosystem. This journey is fueled by four powerful components, ensuring your success in navigating dynamic business and industry landscapes.

  • Schedule a Growth Dialog with our team to dive deeper into transformational strategies and explore specific needs within your company.
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  • Join Frost & Sullivan’s Growth Council and become an integral member of a dynamic community focused on identifying growth opportunities and addressing critical challenges that influence industries.
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