India's Digital Growth: 20% of Data Generated, Only 2% in Data Centres

Imagine you have to walk to work every day, through the scorching heat, or the pouring rain, sometimes battling the traffic and the pollution. One day, somebody hands you a car key. You hesitate at first, not sure if you can handle it. But then you step in the car, turn the key, and feel the rush of power under your feet. You smile. You realize that you can go places you never thought possible, faster and easier than ever before. This is what digital transformation can do for India.

India is one of the fastest-growing digital markets in the world, with more than 700 million internet users and 1.3 billion mobile connections. It generates more than 20% of the world's data, yet it has only 2% of the world's data centres. This means that India is missing out on a massive opportunity to leverage its data and become a global digital powerhouse.

The Indian government has recognized the importance of digital transformation and has launched several initiatives to promote it, such as Digital India, Make in India, and Start-up India. However, there is still a long way to go, and many challenges to overcome, before India can fully embrace the digital age.

Quantifiable Examples:

India's e-commerce market is expected to reach USD 200 billion by 2027, up from USD 38.5 billion in 2017.
India's digital advertising market is expected to reach USD 5.5 billion by 2025, up from USD 1.5 billion in 2020.
India's cloud market is expected to reach USD 7.1 billion by 2023, up from USD 2.5 billion in 2018.
India's data centre market is expected to grow at a CAGR of 12% from 2020 to 2025.
India's mobile data usage per smartphone is expected to increase from 9.8 GB per month in 2020 to 18 GB per month in 2025.

Why India Needs to Invest More in Data Centres

India's digital growth is outpacing its infrastructure. The lack of adequate data centres is a major bottleneck for India's digital future. Data centres are the backbone of the digital economy, providing the infrastructure necessary to store, process, and analyze large amounts of data. Without data centres, India's digital transformation will remain constrained.

Investing in data centres is not just important for India's digital future, but also for its economic future. As India's digital economy grows, it will create new jobs, new businesses, and new opportunities for Indian entrepreneurs and innovators. Data centres can help drive this growth by providing the infrastructure necessary to support digital companies and startups.

Moreover, investing in data centres can help India reduce its dependence on foreign data centres and improve its data sovereignty. India is currently highly dependent on foreign data centres, especially in countries like the US and Singapore. This dependence can be a risk to India's national security and its ability to protect its citizens' data. By investing in Indian data centres, India can ensure that its data is stored and processed in a secure and reliable manner.

Practical Tips for Investing in Data Centres

Investing in data centres requires a long-term vision, a strong commitment, and a sound strategy. Here are some practical tips for Indian policymakers and business leaders who are considering investing in data centres:

Develop a comprehensive national data centre strategy: The government should develop a comprehensive strategy that outlines the vision, goals, and roadmap for data centre development in India. The strategy should address issues such as location, energy, security, connectivity, and sustainability.
Create a favorable regulatory environment: The government should create a favorable regulatory environment that incentivizes private sector investment in data centres. This can include tax breaks, subsidies, and streamlined permitting processes.
Encourage public-private partnerships: The government should encourage public-private partnerships to develop data centres, leveraging the strengths of both sectors. This can help reduce risks, increase efficiencies, and share costs.
Invest in energy-efficient technologies: Data centres are highly energy-intensive, and their energy consumption is expected to increase rapidly in the coming years. Investing in energy-efficient technologies, such as renewable energy and efficient cooling systems, can help reduce costs and minimize the environmental impact of data centres.
Build a skilled workforce: Developing a skilled workforce is critical for the success of data centres. The government and private sector should invest in training programs and education initiatives to develop the skills needed to design, build, and operate data centres.

In Conclusion:

India's digital growth is a great opportunity, but also a great challenge. To fully leverage the potential of the digital economy, India needs to invest more in data centres and overcome the infrastructure gap. Investing in data centres can help drive India's economic growth, reduce its dependence on foreign data centres, and improve its data sovereignty. However, investing in data centres requires a long-term vision, a strong commitment, and a sound strategy. By following the practical tips outlined above, Indian policymakers and business leaders can lay the groundwork for India's digital future.

References and Hashtags:

References:

https://www.ibef.org/download/Digital-India-January-2021.pdf
https://www.statista.com/topics/2157/e-commerce-in-india/
https://www.business-standard.com/article/technology/digital-advertising-market-to-touch-5-5-bn-by-2025-121043000652_1.html
https://www.globenewswire.com/news-release/2020/05/06/2029473/0/en/India-Data-Center-Market-Growth-Trends-and-Forecast-2020-2025.html
https://www.businesstoday.in/technology/news/india-cloud-market-to-cross--7-bn-mark-by-2023-cagr-at-12/story/385038.html

Hashtags:

#IndiaDigitalGrowth
#DataCentresIndia
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#MakeInIndia
#StartUpIndia
#DigitalEconomy
#DataSovereignty
#InvestIndia