Market Trends of Mega Data Center Industry
Rising Demand of Data Centers in Banking and Finance Sectors
- The banking and finance sector is one of the largest generators of data, and the need for a data center to regulate the cost of operations is a primary driver. Finance and banking structures use data centers to store customer records, employee management, transactions, and electronic banking services, such as remote banking, telebanking, and self-inquiry, which need data centers to function.
- Data centers, as infrastructure, are believed to be the future of finance. Many institutions have created private cloud systems to accommodate massive network, storage, and server capacities to support their retail financial centers, ATMs, and active online accounts.
- Many banks maintain their own data centers, but it has been observed that the trend is changing due to fluctuations in the banks' profits. Also, maintaining a data center is cumbersome, owing to the cost drain on IT, real estate, and operations, as it requires proper cooling, security, and power facilities. This can act as a challenge for the BFSI industry during the forecast period.
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Growing Demand from Asia-Pacific to Drive the Market
- The growing demand for high-density, redundant facilities throughout China is precipitating a shift in the design and development of the country's data centers. China has 50 internet users per 100 population, indicating scope for a lot of development, and the connectivity ecosystem comprises 73 colocation data centers, 52 cloud service providers, and 0 network fabrics.
- However, power, space, and IP transit all cost more in China, emphasizing the difficulties in maintaining a data center. Similarly, in India, the digital economy contributes 9.5% of the GDP. The digital economy includes USD 25,518 million fixed-line telephone subscriptions and 1,011.054 million mobile telephone subscriptions, indicating a lot of scope for the development of data centers.
- Moreover, owing to regulatory and security reasons, a number of organizations in India, especially from the BFSI sector, are not allowed to host their data in a data center that is out of the country. As a result, the data center providers are setting up local data centers in India, indicating the growing mega data center facilities in India.
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