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India is an Emerging Nation in the Data Center Market – Arizton

India is a developing data center market in the APAC region. The COVID-19 pandemic has been a strong market enabler for digital transformation initiatives across private and public sector enterprises in India. Over USD 10 billion will be invested in core & shell development and support infrastructure procurement for data centers across India during 2021-2026. In India, state governments are attracting data center investments through MoUs and tax incentives. Maharashtra, Andhra Pradesh, Uttar Pradesh, Gujarat, and Telangana have announced incentives for data center development in the last two years.

Arizton’s research reports on the data center knowledge base offer an up-to-date analysis regarding the current market scenario, the latest trends and drivers, and the overall market insights. Observing these rapid and drastic changes in demand and supply patterns encouraged the industry analysts at Arizton to publish exhaustive and data-driven insights on these recent trends in the industry.

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India Data Center Market – Investment Analysis and Growth Opportunities 2021-2026 

India data center market size will witness investments of USD 8 billion by 2026, growing at a CAGR of 12% during 2021-2026. Arizton has identified about 79 unique data center facilities and 23 upcoming facilities in India.

Due to the COVID-19 lockdown, India has witnessed a growth of over 30% in internet usage consumption. The demand for data centers has gone up due to increase in access to internet-related services by organizations across various sectors. In 2020, in India, the top three states cumulatively added more than a million square feet of data center space. Maharashtra is adding the highest area, followed by Tamil Nadu and West Bengal.

Key Highlights:

  • In Q3 2020, the data center market witnessed a strong spike in announcements related to new projects across India. The major demand for data center capacity during the COVID-19 pandemic ensued from cloud-service providers.
  • Adani Group has planned to set up the hyperscale facility Adani Chennai-1 with the investment of around USD 340 million in Chennai.
  • According to Ericsson, in India, the total 5G connections will be around USD 350 million by 2026.
  • In 2020, the Tamil Nadu data center market witnessed investments from colocation service providers, telecom operators, and government entities.
  • Chennai is the leading submarine cable landing station in Southern India, which attracts a higher number of data center investors.
  • ST Telemedia Global Data Centres India has planned to construct a greenfield data center campus in Noida with an investment of over USD 150 million.

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Vietnam Data Center Market – Investment Analysis & Growth Opportunities 2021-2026 

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Vietnam data center market size will witness investments of USD 673 million by 2026, growing at a CAGR of 8.18% during 2021-2026. Arizton has identified about 21 unique data center facilities and 3 upcoming facilities in Vietnam.

In Vietnam, major telecommunication providers such as FPT Telecom, HTC International Telecommunication (HTC-ITC), VNPT, and Viettel Networks are investing in data center facilities. In 2020, Vietnam received an investment of around USD 420 million in data center facilities by FPT Telecom, across Da NangHanoi, and Ho Chi Minh cities, along with other enterprise and on-premises investments.

Key Highlights:

  • In Vietnam, the cloud computing market is led by both local and global companies such as FPT Corporation, Viettel-CHT, CMC Corporation, IBM Vietnam, Microsoft Vietnam, AWS Vietnam, Mat Bao Corporation, NTC Cloud Computing, SAP Asia (Vietnam), HPT Vietnam, and Google.
  • In Vietnam, the banking industry is moving towards the adoption of Big Data and cloud computing solutions to provide a wider range of customized services more efficiently and cost-effectively to clients.
  • In Vietnam, most facilities are built according to Tier III standards, with a minimum redundancy of N+1 for generators.
  • 5G networks will boost the adoption of digital platforms in the country and heighten the demand for high bandwidth networking infrastructure.
  • Vietnam is aiming to generate around 30% of its electricity via renewable sources and reduce its Greenhouse Gas (GHG) emissions by 8% by 2030. By 2045, renewable energy is expected to contribute to over 50% of the overall capacity of data centers in Vietnam.

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Indonesia Data Center Market – Investment Analysis and Growth Opportunities 2021-2026

Indonesia data center market size will witness investments of USD 2275 million by 2026, growing at a CAGR of 6% during 2021-2026. Arizton has identified about 40 unique data center and 5 upcoming facilities in Indonesia.

Indonesia attracted most of the investment from colocation service providers such as Keppel Data Centres and Salim Group, NTT, Space DC, DTP, Biznet Data Center, and DCI Indonesia. In Indonesia, wholesale colocation contributes around 8% of the market share and retail colocation was 92%.

Key Highlights:

  • The IoT market in Indonesia is estimated to reach around USD 110 billion by 2025. Per the Indonesian IoT Association, the country has installed over 450 million sensor devices.
  • DCI Indonesia and Space DC are major investors involved in the construction of Tier IV facilities.
  • Indonesian data centers are a major adopter of DRUS systems, with generators mostly used in N+1 redundant configuration.
  • The Indonesian government program ‘Making Indonesia 4.0’ is applicable to all industry verticals and will enable IoT as a link for all equipment to be connected to the internet.
  • Microsoft announced its first data center in Indonesia, while Alibaba planned to launch its third cloud data center in Indonesia, which is expected to be operational in 2021.
  • In 2021, Batam Sarawak Internet Cable System (BaSICS) will connect Malaysia and Indonesia. It will be ready for service by January 2021 and would enhance the connectivity between the two countries. The development of new data centers increases with the better submarine cable deployment YoY.

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[To share your insights with us, please write to sghosh@martechseries.com]

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