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Understanding the Growth of Data Centre Market in India Amidst COVID-19 Induced Lockdown

As the world transitioned to complete digital forms of living at the onset of the nationwide lockdowns, the data centre market in India saw a boom in the industry, with stakeholders, customers, and employees turning to online platforms for daily operations.

The expanding interests towards social media and various streaming services made businesses across verticals adapt to this new normal abruptly. Moreover, as work from home and remote working became the norm, business enterprises turned towards robust data centre systems for support, reliability, and business continuity.

Data-driven businesses require online transactions and appropriate IT infrastructure to provide mission-critical solutions and grow in the current scenario. According to industry forecasts, the capacity of data centres in Chennai is predicted to increase 2.5 times to 133 MW by 2023, primarily driven by demand from cloud operators.

Enabling the customers’ IT strategies, data centres in Chennai have risen with the surge of e-commerce gateways and internet-based companies for providing enriching user-friendly experiences and improved connectivity.

Contributing Factors for Sustained Growth of Data Centres in India

Government-led programs like Digital India and introducing the concept of self-reliance have made even small businesses thrive on data-led inventions and operating through data localization. A large proportion of the population has focused their time in the COVID-19 lockdown in consuming all sorts of data online, and businesses have leverage digital channels to sustain, which has thus increased the demand for cloud services and data centres.

Mainline BFSI, telecom, VPS hosting, and cloud service industries have made use of colocation services to establish facilities with minimum investment and upkeep, and maximum output and reliable operations. However, since the cost of data redundancy, maintenance, and supporting infrastructure tariffs have been skyrocketing, more and more organizations have been committed to exploring data centre services in India.

There are two significant types of DC providers emerging as game-changers in the data centre market in India. These are Captive and Third-Party Operation models. While the captive model stresses on privately owned services, third-party models are outsourced data centres that have tie-ups with partnering businesses for achieving the common goal of mission-critical IT solutions and colocation services from external providers.

Role of Chennai as an Emerging Data Centre Hub

The most well-connected and strategically located cities that have become the focal point for data centres in India are Mumbai, Chennai, Pune, and Hyderabad. The availability of state-of-the-art infrastructure, lower power tariffs, and high connectivity is the reason for the remarkable shift to data-driven digitalization.

As per estimates, India stands at 375MW installed power capacity for data centres and has the potential to grow by three times by 2025. As for data centres in Chennai alone, the capacity is expected to grow by 2.5 times to 133 MW by 2023, owing to its strategic locations, enhanced power supply, and high-quality connectivity. By that margin, Chennai adds up a huge amount of overall growth for data centre services in India.

The pandemic did not dial down the rapid growth of the data centre market in India. In fact, the various policies and reforms added to its sustained growth, transforming India into a global data hub.

The Way Forward with Leading Data Centre Services Providers

Data centres have become viable now more than ever, and with the COVID-19 pandemic, all stakeholders have resorted to data centre and cloud services that are reliable, secure and scalable. Moreover, the advent of 5G and IoT-oriented products that are data-heavy and rely on partnerships with leading colocation providers such as STT GDC India.

With STT GDC India operating in nine cities with 21 state-of-the-art data facilities, there has been a robust rise in mission-critical and energy-efficient data centre and colocation solutions. They presently have three data centres in Chennai, delivering the highest standards of structural and technical data centre design specifications, as well as guaranteed uptime with multi-layered security to keep your daily functioning seamless.

STT GDC India believes in achieving industry benchmarked service delivery, ensuring businesses leverage operational excellence and gain competitive advantage. So, if you are looking for the best data centres in Chennai, explore STT GDC India’s suite of colocation services now!

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