The Indian data center market was valued at USD 4.35 billion in 2021. It is expected to reach USD 10.09 billion by 2027.
In 2022, the data center industry is expected to shrug off the slowdown caused by the pandemic. Statista predicts that spending on data center systems will amount to USD 227 billion. This is an increase of 4.7 percent from the previous year.
The United States leads the world in terms of data centers, with more than 2700 as of January 2022. The North American data center market is robust. Germany is in second place, followed by the United Kingdom and China. A Cushman and Wakefield report indicates that the top five data center markets are Northern Virginia, London, Tokyo, Shanghai, and Singapore.
The Indian data center market was valued at USD 4.35 billion in 2021. It is expected to reach USD 10.09 billion by 2027. The driving factors are expansion and investments in new projects with hyperscale operators and increasing digitalization.
There is great potential in other parts of the world, too. The Hong Kong data center market, is expected to reach USD 4.12 billion by 2026. The France data center market size should register a CAGR of 8.7 % from 2021 to 2026. The Africa data center market size by investment is predicted to touch USD 5 billion by 2026.
With increasing data center traffic, the need for energy management solutions is also rising. These allow large data centers to manage and store data more effectively. The goal is to reduce power consumption costs. Advances in cooling technology and distributed resources are some ways in which this is achieved. The rise of energy-efficient data centers will also help to lower the emissions footprint. Advanced power meters will let data center management know what needs to be streamlined. Other steps are upgrading hardware, eliminating inactive sensors, and designing rooms with better airflow.
Looking ahead, the aspect of sustainability will become as crucial as energy management. New-age data centers will use hydroelectric, solar, and wind power. Other forms of renewable energy resources will also be utilized. Green data centers can conserve energy to save costs and be environment-friendly. Efficient use of these forms of energy will also improve flexibility and capacity. Obsolete systems will have to be overhauled, and new designs will need to focus on sustainability. The result will be an elimination of waste, cost efficiencies, and increased use of green products.
Data centers store important proprietary data. That is why data center security has always been a critical element of their operations. However, breaches and attacks have become more sophisticated in recent times. Data centers are stepping up their investments in this area. Advanced firewalls and anti-malware programs continue to protect them from unauthorized access. In addition, social engineering security has become increasingly important. This emphasizes user education about security practices. The aim is to help organizations become aware of phishing and similar attacks. Increased automation and distributed data infrastructure are other ways data centers will be safeguarding data.
As businesses become more dependent on data center services, they seek flexible, cloud-like payment models. In these models, clients make periodic payments for the hardware and IT consumption. They can scale up as their needs change. Data center infrastructure can be utilized as a managed service and cloud-like consumption plans. Other plans include leasing capacity at fixed costs. Some centers provide immediate access to additional capacity if the client's needs arise. In these data center networking trends, payments are adjusted to match usage. Itemized billing services let clients know how many resources they use and when. This leads to more efficient utilization of services.
To service modern business needs, data centers should be equipped to handle requirements across premises and private and public clouds. The advantage of these models is that distributed applications can expand, contract, and be redeployed depending on the situation. This is enabled by hybrid data center architecture. Virtual processing and software-defined networking can deliver information and analysis across environments.
The result is excellent IT efficiency, automation, and agility. The evolution of hybrid models lets organizations creates an optimal cloud and traditional IT mix to suit their changing requirements.
The rise of Artificial Intelligence will profoundly impact data center storage trends. They will be able to achieve higher performance standards and become leaner and less costly to operate. Other benefits include load management, power, resource consumption, and security. AI will also lead to hyper-scale operations. Increasing automation will reduce the dependence on human operators. For this to take shape, reskilling the existing workforce will be necessary. Advanced levels of training and education will be significant and attract top-flight talent.
5G technology is poised to make data centers more capable of handling vast amounts of data. When this ability is combined with Edge computing, it can unlock potential that will impact engineering, software design, and manufacturing. Fast services and minimal latency will create unprecedented data availability and usage. It will enable data centers to be at the heart of the Internet of Things, enabling device-to-device connectivity.
The pandemic and global conflicts have affected many industries. Data centers are no exception. One fallout of these crises is a variety of strategies to manage inventory. Deadlines for material availability have to be skillfully negotiated. New and upcoming data centers mainly feel the impact. Forecasting needs will have to be refined. Ordering equipment in advance, efficient warehousing, and sourcing new suppliers are some activities that will assume greater importance.
At Nxtra, we're ready to take advantage of these and more trends. We design, create and maintain a network of hyper-scale, core, and edge data centers in India. You can expect reliability, flexibility, and a superior customer experience. To find out more about how we meet the needs of today's companies across verticals, do get in touch today.
Nxtra by Airtel, a subsidiary of Bharti Airtel Limited, offers largest network of secure, scalable, and sustainable data centers in India to leading enterprises, hyperscalers, start-ups, SMEs and governments.
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