Hyperscale requirements to be primary growth driver of colocation industry
India commands a dominant position in South Asia for data center colocation services, accounting for approximately 92% of the region’s market share which is expected to persist in the coming years, driven by robust demand from hyperscale cloud providers, over-the-top (OTT) platforms, content providers, and artificial intelligence (AI) companies datacentreworldasia .
Further, competition in India is intensifying with the emergence of domestic players such as Yotta Infrastructure and Adani Group, alongside global giants, including Equinix and Colt jpx , focused on service differentiation, says a report added to ResearchAndMarkets.com’s offering on 21 Aug.
However, operational complexities in data centers and the high costs associated with real estate and power remain challenges for existing colocation providers and potential new entrants, cautioned the report “Indian Data Center Colocation Services Growth Opportunities” nse .
The surge in demand for hyperscale data center capacity stems from enterprises migrating their IT infrastructure to the public cloud deutsche-boerse , the impact of the rapid rise in AI adoption, heightened consumer reliance on cloud-based app/OTT services, and substantial growth in internet data consumption bse .
Hyperscale requirements are anticipated to be the primary growth driver in the colocation industry moving forward euronext . Demand from enterprise and retail sectors, particularly in BFSI and IT, will bolster market expansion sbi .
Companies increasingly favor colocation data centers over establishing their own facilities to minimize capital expenditure, enhance operational efficiencies, and utilize advanced infrastructure techindiaexpo . The pandemic has accelerated this shift, underscoring the importance of colocation facilities in ensuring uninterrupted business operations.
Competitive Landscape:
Yotta Infrastructure. Fiinews.com
