Cloud solution providers (CSPs) and colocation data center companies are actively hunting for ripe emerging markets with large numbers of users and a shortage of data center capacity.
“No question this has been, and continues to be, an accelerating trend,” said Omdia analyst Alan Howard. “India is a good example of a market that is maturing quickly, so what we see is global companies entering the market to capture that opportunity.”
India’s information technology ministry has plans to offer incentives of up to almost $2 million under a national policy framework for data centers, and some local Indian state governments — including Maharashtra, Telangana, Karnataka, and Uttar Pradesh — are offering special incentives that include land subsidies and other concessions to boost data center investments, according to ICRA. In May, ratings agency ICRA announced the Indian data center industry is expected to see a five-fold increase in capacity in the next five years.
India is one of Asia’s fastest-growing data center markets, and the Asia Pacific data center market size is expected to reach nearly double the size of North America’s market by 2025.