Data Center IT Power Capacity is Expected to Reach About 800MW by 2024: Praxis Report

Mumbai, India, April 29, 2021 --(PR.com)-- The Data Center IT power capacity is expected to reach about 800MW during 2021-2024, progressing at a CAGR of 16 percent according to a recent report by Praxis Global Alliance, a global management consulting and advisory firm. The Data Center revenue is progressing at a CAGR of 8 percent to reach US$ 4 billion during the forecast period

The report on "Data Centers - The sunrise of a new era in global infrastructure" offers a detailed perspective on the growth of the Data Center infrastructure, key challenges, and emerging trends and opportunities in the Data Center business.

Further, the report evaluates the potential growth expected over the next few years in terms of revenue growth and IT power capacity growth. The analysis also includes the component and geography landscape such as the key players in India and globally, their focus in the top seven cities in India, their financial positions, and margins seen in this business.

Some key highlights from the report include:

1. Data Centers growth in terms of IT power load capacity has witnessed a robust 18 percent CAGR between 2007 and 2020, reaching about 432MW; in terms of real estate capacity, it has witnessed 13 percent CAGR growth during the same period
2. Going ahead, Data Center revenues are expected to clock about US$ 4 billion by 2024; while the IT power load capacity is expected to continue growing at a CAGR of almost 16 percent during the same period
3. Indian Data Center industry attracted around US$ 238 million worth of private equity investments in 2020
4. Top 8 Data Center players account for above US$ 6 million sq. ft; while Mumbai currently accounts for about 50 percent of all Data Center building space in India
5. Demand for hyperscale Data Centers are growing rapidly and captive Data Centers are moving towards third party Co-location (Colo) type Data Center business models
6. Domestic players are witnessing a CAGR growth of about 20%; Margin profiles becoming better with scale
7. India has lower average monthly charges than other developed countries due to lower cost and increasing demand
8. India’s draft Data Center policy aims at creating a sustainable ecosystem for Data Center players with supporting infrastructure and skilled manpower availability
9. Upcoming technologies related to the Internet of Things, artificial intelligence and machine learning, predictive maintenance, and big data would increase the demand for Data Centers
10. Going ahead, key end-use segments such as autonomous vehicles, Ecommerce, social media, connected devices, etc., would drive the growth for Data Centers

Aryaman Tandon, Practice Leader, Infrastructure, Praxis Global Alliance said, “Data proliferation over the last few years has created significant demand for Data Centers. Key segments such as Social media, Ecommerce, BFSI, etc. have led to the growth in data consumption. COVID-19 has further increased digital adoption and hence the demand for Data Centers will continue to be on a growth path, making it the sunrise of a new era in global infrastructure.”

Arindam Bhattacharjee, Domain Leader, Data Centers, Infrastructure, Praxis Global Alliance said, “There is a shift from Captive Data Centers to third party Data Centers with business models like hyperscale, colocation and Edge gaining significant traction.”

Savio Monteiro, Senior Vice President, Infrastructure, Praxis Global Alliance said, “Data center capacity is expected to witness significant growth over the next five years with new technologies like 5G and Edge computing along with new demand drivers such as autonomous vehicles, connected devices, etc. All these would push the demand for data centers.”

The Data Center market is driven by the rise in the adoption of smartphones and increased access to internet-related services over the last decade. In India, Data Centers are used by large customers across industries such as Information Technology (IT), Banking, Financial Services and Insurance (BFSI), Ecommerce and Social Media which require storage of a large volume of customer data and together contribute to 75-80 percent of the total data consumption. However, data consumption in India on a per capita basis is far lower than its Asian and Western counterparts.

Some of the key global trends to monitor in this segment are – growing demand for hyperscale Data Centers, shift toward cloud computing, growth of 5G and Edge Data Centers, the emergence of Green Data Centers, and more.