What is Future of colocation industry in India?

Answer 1

Digital transformation has accelerated the usage of data in multiple folds. It’s perhaps the new fuel for businesses, considering commoditization and the online shift has impacted most industries since the pandemic arrived. In the previous year, the sudden increase in demand for data was felt like never before. As more businesses begin to migrate their IT infrastructure to easily-accessible platforms, the demand for colocation centres is observed to be on the rise.

A colo or colocation centre is a facility that offers space with proper power, cooling, and security, bandwidth for smooth operations, and physical security to host businesses. Considered as an alternative to traditional hosting, colocation facilities may house multiple businesses depending on the requirements of each.

While the process of digital transformation took some time to get adopted by all kinds of businesses, one of the best outcomes the pandemic had was the rapid digitization of these businesses. Data localization is probably going to increase the geographical distribution of colocation providers, thereby increasing the data centre service revenue in the country. According to a recent report from Globenewswire, state governments in the country like Maharashtra, Andhra pradesh and Telangana have announced incentives for data centre development in the last two years. Through this step, they intend to support the strong growth of wholesale colocation.

With so much rise and expansion expected in the data and colocation industry in India and abroad, and escalated demand for IT and server racks sounds normal. Netrack India, one of the leading manufacturers and suppliers of rack enclosures also believes that the IT and communication infrastructure are likely to grow double in size in the coming years. The maturity of colocation has brought scaling, design, and delivery easier for large deployments. Colocation is sure going to be a compelling option in years to come.