Growing market of Data Centre in India to reach $4.5 billion by 2018- IAMAI

Data Centre

India’s data centre infrastructure market is expected to reach $4.5 billion by 2018, where the current value is $2.2billion.
India has assured to be the second-largest market for data centres in Asia-Pacific by 2020 and investments are expected to touch $7 billion, as per the report by Internet and Mobile Association of India (IAMAI).
The report was declared by Amitabh Kant, CEO of NITI Aayog, which is titled ‘Conducive Policy & Regulatory Environment To Incentivise Data Center Infrastructure,’ the report emphasizes the more chances for the sector.
“India can grow to an infrastructure hub attracting $7 billion or 4.5% of the world’s investments by 2020 and there is an urgent need to create appropriate incentives to attract those investments and enable better connectivity, data speed and create more jobs in the country,” states the report.
The report also emphasizes various legal, policy and regulatory enablers that are necessary to promote data centre industry and improve India’s positioning in the global data centre market. It strongly challenges mandatory data localization norms which will minimize competitiveness and will have a deterring impact on the GDP of the economy, driving away India’s extensive ability to attract data centre investments.
“Cloud Computing and virtualization will lead the technology evolution and continue to trigger growth in the data centre services market provided as there is a seamless movement of data across national borders benefiting both businesses and consumers, allowing them to access the best available technology and services wherever those resources may be located.”
The report warns that generating investment in data centres in India is about to develop a regulatory regime that provides an incentive to private companies to invest in India. If the present rule is not rectified, India will go without a valuable growth opportunity.
The high cost of internet bandwidth is observed as a big barrier in the growth of data centre market in India. The cost of bandwidth is very high in India as compared to peers,  as per the report.
The report also emphasised on green data centres. It states that there should be government initiatives to promote green technology enabled data centres. The green DC Standard in Singapore supported organizations establish systems and processes essential to improve the energy efficiency of their data centres with a recognized framework besides a logical and consistent methodology.

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