Market Trends of Hyderabad Data Center Industry
Rising Cloud-based Business Operations Migration
- Hyderabad-based software businesses have recently reduced their computer costs by 25% to 50%. These start-ups receive cloud services from large international corporations, including Microsoft Azure, Amazon Web Services (AWS), IBM Cloud, and Google Cloud Platform. To give customers more alternatives for running workloads with even better resilience and availability, securely storing data, and providing end users with even reduced latency, AWS recently announced the creation of India's second AWS Asia-Pacific (Hyderabad) Region.
- In November 2022, AWS India announced a planned investment of more than USD 438.37 million; this is expected to support an average of more than 48,000 full-time jobs yearly by 2030. By 2030, it is anticipated that the development and operation of the AWS (Hyderabad) Region will boost India's GDP by about USD 768.63 million.
- With digital transformation accelerating across businesses and the internet being a lifeline for individuals for work and enjoyment, the epidemic has increased demand for cloud services in Hyderabad. Investments in hyper-scale data centers have surged as a result of this transition to the cloud, with According to rating agency ICRA, India's data center capacity is predicted to rise by a factor of six over the next six years, to 4,900-5,000 MW, given the existing investment pipeline of approx USD 18.13 billion.
- In April 2022, Microsoft declared that its newest data center area would be located in Hyderabad, Telangana. This tactical investment is consistent with Microsoft's dedication to helping customers succeed in a cloud- and AI-enabled digital economy. The Hyderabad data center will be a recent addition to this network. It will enable data protection for enterprises, start-ups, developers, educational institutions, and governmental organizations across the entire Microsoft portfolio, including the cloud, data solutions, artificial intelligence (AI), productivity tools, and customer relationship management (CRM).
- Hyderabad data center operators have invested in technology to offer their clients the best services possible. Scalable cloud services enable businesses to compete successfully without worrying about the declining returns brought on by growth. The data center supplier ensures enough resources are available to handle a spike in resource demand. Those services' scalability choices drive Hyderabad's need for data centers.
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Government policies would advance the Investment of Data Centre
- The Government of Telangana pledges to boost its use of cutting-edge tools like AI, ML, big data, and blockchain to give residents a quick, dependable, and safe e-governance experience and develop an IT and emerging technologies department with a dedicated budget. The government guarantees that all residents will have access to 5G internet with a full rollout to accomplish state-wide digitization.
- The players have chosen facility development as their primary tactic to accommodate the country's expanding consumer demand. For instance, Indian telco Bharti Airtel outlined an extensive growth plan for its data center subsidiary Nxtra in October 2021. By 2025, the capacity of Nxtra's data centers will have tripled to more than 400MW, according to the business. To expand its data centers around the country, Airtel plans to spend USD 604.4 million. Significant metro locations will add new data center infrastructure.
- In January 2022, the United States tech giant Microsoft and the Telangana government finalized a deal to set up an USD 1.81 billion data center in Hyderabad. A 50-acre land near the city is believed to have been finalized, and the project is expected to create around 300 jobs. Furthermore, various state governments are also supporting Colocation Data Centers to set up their facilities and give their lands for the infrastructure. These factors significantly contribute to the market growth rate during the forecast period.
- The first state in India to introduce a data center policy is Telangana. Given the substantial fuel consumption of backup power sources such as generator sets, the government must offer fuel to qualified businesses in the Data centers Campus at a price below market rates. The operating guideline will provide more information on this. Given the data center's sector-specific design and construction characteristics, the Telangana government shall include data center-related infrastructure under the building clearance rules. Data centers would be classified as a unique infrastructure category.
