India Data Center Market – Market Scenario 2011

The internet user base is expected to reach 237 million by 2015 form 81 million in 2010(BCG). Rapid rise in ecommerce transactions and on line services like banking, employment, matrimonial, social media, etc the amount of data that the enterprises and government organizations are capturing and storing have led to huge demand for data centers in India. India is also emerging as the data centre hub for nearby markets such as West Asia, east Africa and Southeast Asia.

 Market Scenario
Gartner predicts that captive data centre capacity will increase to 2.571 million square feet (CAGR 29 %) and hosted data centre capacity will grow to 2.573 million square feet (CAGR 33%), thus adding the total capacity to 5.143 million square feet (CAGR 31%) by 2012 (CAGR 2007-12). Cyber Media Research forecasts data center services market will touch $2.6 billion by 2012 (CAGR 23%). IDC India expects total data center to touch US$ 2.2 billion by the end of 2011. Springboard Research (Forrester Acquired) estimated third part data centers market to reach US$1.1 billion by 2015 (CAGR 29% 2010-15).

Source: Gartner. 1. Gross Capacity above 1000Sqft only. 2. Captives include System Integrator run centers also

India Data center market according to estimates is expected to cross US$ 2bn by end of 2012. With a CAGR growth of 20-30% the data center market will be one of the growth engines for the Indian IT and Outsourcing industry. Third party Data center is expected to grow by CAGR 34% as forecasted by Cyber Media research in terms revenue and by CAGR 31% in space capacity as forecasted by Gartner. Third party data center market is dominated by telecom operators. Captive data center market is expected to slowdown compared to overall data center market.