Market Trends of Bengaluru Data Center Industry
Government policies would advance the Investment of Data Centre
- The capacity of data centers is anticipated to reach about 1650 MW in 2025 thanks to favorable central and state government initiatives, the move to cloud infrastructure, growing digitization across industries, the rollout of 5G services, the growth of hyperscale data centers, and increased investment in data centers. Major cities like Mumbai, Hyderabad, Chennai, Noida, Bengaluru, and Kolkata, among others, would be responsible for a sizable rise in capacity. Additionally, in the upcoming years, a wide variety of new data center operators will transform the Indian data center landscape by offering innovative concepts and scalability across cities.
- The need for cloud-based solutions has grown nationwide because of increased technology usage and consumer desire for the cloud, which allows access to data from remote locations. As more organizations recognize the value of saving money and resources by transferring data to the cloud rather than constructing and maintaining on-premise infrastructure, the demand for cloud-based solutions and, as a result, the adoption of cloud-based data centers across the country has surged.
- In addition, Karnataka is projected to become a premier data center destination in India and take the lead as one of the leading digital economies in the nation, supported by its most recent dedicated data center (DC) strategy. In the coming years, the rapid expansion of cloud providers will lead to DC capacity requirements, generating a need for hyper-scale DCs in Bangalore, which the state government will support in tax exemptions and rebates.
- Given its current solid digital infrastructure, integrated favorable policy framework, and civil infrastructure, Karnataka is expected to become the most attractive state for setting up DCs as the sector grows. The DC policy intends to increase the current capacity to 200 MW by 2025 and targets investments worth USD 1.21 Billion.
- Several state governments, including those in Karnataka, have established their plans to encourage the establishment of data centers through cost and power subsidies, stamp duty exemptions, discounts on renewable energy sources, and local IT component purchases.
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Increased Migration to Cloud & IT based Business Operations
- With an investment of USD 716 Million, the Karnataka government intends to establish a cloud-based state data center for various departments and PSUs. A 24-7 cyber security operation center with cyber professionals utilizing new technology would be developed to safeguard the security of government websites' online services and data.
- In February 2022, AWS planned to establish four new mini-data centers in Bengaluru, Chennai, Delhi, and Kolkata. For those clients who want almost zero latency for their applications, these local zones, constructed in highly populated locations, will offer cloud services. This data center provider offers various services and supplies server infrastructure, including managed databases, content delivery networks, and cloud services. Users of the platform benefit from the highest levels of uptime, security, scalability, AI, and machine learning.
- The pandemic has raised the demand for cloud services, necessitating a continuous data backup, and digital transformation is speeding up across all businesses. The shift to the cloud has led to increased investment in hyperscale data centers. The need for data centers has grown significantly in direct proportion to data consumption and cloud usage development.
- Regarding cloud services' scalability, business organizations have varying needs. Businesses that are expanding prepare for the possibility of scaling when necessary. Privately owned servers may experience this issue. However, providers of data centers in Bangalore have made technological investments that give their clients the best possible services. When a company has access to scalable cloud services, it may compete successfully without being concerned about the declining returns that come with expansion. The data center provider ensures enough resources to handle increased resource demand. The scalability choices of data center services drive demand for data centers in Bangalore.
