Bengaluru Data Center - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2018 - 2030

The Bengaluru Data Center Market size in terms of installed base is expected to grow from 205.64 megawatt in 2024 to 414.63 megawatt by 2030, at a CAGR of 11.43% during the forecast period (2024-2030).

Key Highlights

• A data center is a specific area inside a structure or a collection of designs that house computer systems and related equipment, such as networking and storage systems.
• The metropolis's enormous and steadily expanding IT and technology-startup ecosystems will increase demand. Banglore will continue to be favored for its emergence as one of the future centers of the Indian data center industry due to IT expertise, attractive geographic locations with low risk of seismic activity and other natural disasters, and excellent domestic and international connectivity.
• Data Centres have recently assumed a more significant position in enterprises due to the expanding relevance of intelligent technologies, IoT-powered devices, Big Data, Industry 4.0, 5G, and cloud computing. The COVID-19 outbreak's increased data consumption patterns have highlighted this new market's growth potential.
• Furthermore, the robust growth of Karnataka's growing technology system, home of over 5500+ IT/ information technology-enabled services (ITES) companies, in the era of Virtualization and cloud computing, would add to the growing demand for data centers.
• One of the significant challenges that data center operators confront in Bangaluru is the rising cost of land acquisition, which raises the initial expenditure required to set up a data center. Because most existing availability zones are in formerly industrial areas rapidly becoming mainstream, alternatives are limited, and land costs are rising. Furthermore, land titles in the region frequently need to be clarified. This has become a problem for data center operators.
• Furthermore, the COVID-19 outbreak significantly influenced the country, hurting local data center service providers. Furthermore, due to the country's extensive travel ban, many organizations resorted to working from home, dramatically increasing data traffic and putting pressure on the data center's capabilities to prevent downtime.

Bengaluru Data Center Market Trends

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.

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.

Bengaluru Data Center Industry Overview

The Bengaluru data center market is fragmented in that key vendors are utilizing inorganic growth techniques, such as mergers and acquisitions and strategic partnerships, to increase their market share. Some players include Reliance Industries, Nextra Data Limited, CtrlS, STT Telemedia, and Sify Technologies.

• In September 2022, Power Grid Corporation India Ltd and Tele India Datacenter, also known as "Datasamudra," India's first On-demand and On-requirement datacenter based in Bangalore, offering globally aligned colocation, hosting & cloud services, signed a Memorandum of Understanding to combine their resources to improve user experience.
• In March 2022, Tulip Telecom revealed the third-biggest data center in the world and the largest in Asia. The commercial opening of Tulip Data City (TDC), a Bengaluru data center, was announced by Tulip Data Centre Services (Tulip), a provider of enterprise data services. The TDC was constructed to tier 4 and tier 3 standards. The facility, the most "green" and energy-efficient data center in India, is predicted to save up to 35 MW of power while operating at total capacity. The business collaborated with companies including IBM, HP, Cisco, EMC, Schneider Electric, Emerson, Panduit, and Corning to create the facility. It occupies 0.9 million square feet. Up to 12,000 racks can be housed in this facility, generating up to 100 MW of power.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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