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India Data Centre Market Set to Reach USD 1.5 Billion by 2010; Power Challenges Remain Critical

India Data Centre Market Set to Reach USD 1.5 Billion by 2010; Power Challenges Remain Critical

A new report from consulting company and data centre market specialist BroadGroup finds that the India market is experiencing substantial growth and will reach more than USD1.5 billion in value by 2010. Yet power supply remains a critical challenge for the country.

Based on a study detailing the profiles of 34 players, the study reveals that while growth is occurring at unprecedented levels, challenges remain particularly those relating to infrastructure, power – and the quality of power – and land availability.

Technical space will nevertheless more than double over the next two years. Fuelled by offshoring, overseas MNCs, and domestic demand, data centres in India have experienced significant growth over recent years, and as the survey reveals, new build and plans for new build are well advanced producing a spike in space that will more than double current capacity.

The core of the report details profiles of 34 players in India, both overseas and domestic, and the report examines current availability, location and expansion plans. The scale and capacity of the international ambitions of the top five players is supported by significant and growing demand from the local market. Although Global MNCs are becoming selective about the robustness of power supply, security and green credentials, overseas systems integrators and consultancies are sustaining and expanding their investments in India.

“India has the opportunity to become a global hub,” commented Frank Booty, editor of Data Centre News. “India’s language capabilities, skill levels, culture and governance are suited to the country becoming a global hub. It also has a resilient economy driving domestic demand for services. Until now much of the data coming out of India has been stored on servers in the US.”

Data Centre build however over the coming years will need to reflect the Green standards increasingly included in corporate RFPs, and there is an urgent need to address how the infrastructure will cope with the levels of power demanded by these plans. Corporates will also need reassurance about data loss and disaster situations.

In common with data centres globally, India data centres confront the challenge of cooling. Growing alarm expressed by interviewees for the report focused on the dollar/rupee spending on blade servers today, which embeds two to four times more power consumption in the same or less space, than was required by the equipment being replaced.

The report is the first to assess a complex and fast changing market but one that contains significant opportunities for companies engaged in the sector from the operators themselves through to a huge business for air conditioning companies and UPS suppliers.

http://www.datacentres.com/reports/dcindia08.asp

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