India’s Infrastructure Makes it a Preferred Place for Data Centre Business: Report
India’s economic landscape has undergone significant transformations in recent years, driven by the government’s initiatives to boost digital infrastructure, make data centres more accessible, and create a conducive business environment. The country’s rapid growth in digital adoption, coupled with its competitive cost structure, has made it an attractive destination for data centre businesses. According to a recent report by JM Financial, India’s infrastructure is poised to make it a preferred place for data centre business, driven by improving cross-border connectivity, lower capital and operating costs, and other enabling factors.
Why India is an Attractive Location for Data Centre Businesses
India’s data centre market has been growing steadily, driven by the increasing demand for cloud computing, big data analytics, and artificial intelligence. The country’s data centre market is expected to reach $4.2 billion by 2025, growing at a CAGR of 24% from 2020 to 2025. Several factors contribute to India’s attractiveness as a data centre hub:
Impact on Indian Investors
India’s emergence as a preferred data centre hub has significant implications for Indian investors. For individual investors, the growth of the data centre industry presents an attractive investment opportunity, as the sector is expected to see significant growth in the coming years. For institutional investors, such as pension funds and insurance companies, the growth of the data centre industry presents an opportunity to diversify their portfolios and generate returns.
Comparison with Global Markets
India’s data centre market is expected to grow at a faster pace than many other countries, driven by the country’s large and growing population, increasing digital adoption, and government support. In comparison, the global data centre market is expected to grow at a CAGR of 13% from 2020 to 2025. While India’s data centre market is still smaller than many other countries, its growth potential is significant, making it an attractive location for data centre businesses.
Unique Aspects of the Indian Market
India’s data centre market has several unique aspects that set it apart from other countries. One of the key factors is the country’s large and growing population, which presents a significant demand for data centre services. Additionally, India’s digital adoption rate is one of the highest in the world, driven by the increasing use of mobile phones and the growth of the e-commerce sector. This presents a significant opportunity for data centre businesses to provide services to a large and growing customer base.
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Conclusion
India’s emergence as a preferred data centre hub presents a significant opportunity for data centre businesses, investors, and the Indian economy as a whole. The country’s competitive cost structure, improving connectivity, and government support make it an attractive location for data centre businesses. As the data centre industry continues to grow, India is likely to play a significant role in the global data centre market.
