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India data centre infra market to touch $2.8bn in 2020

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The data centre infrastructure spending in India is expected to touch $2.8 billion, with an year over year decline of 14.4 per cent in 2020 and an estimated single digit growth in 2021, a new Gartner report said on Wednesday.

Many Indian enterprises have delayed their infrastructure capex (capital expenditures) intensive refresh/upgrades due to the ongoing cost containment, according to the latest forecast from the global market research firm.

These end users are evaluating “as a service” infrastructure consumption models.

“Focus on automation, remote monitoring, coupled network optimisation is part of the new normal for infrastructure leaders in India,” the report said.

Covid-19 has accelerated the transition towards Hybrid Cloud as more Indian enterprises are experiencing the benefit of public cloud during this pandemic.

“The priority for most companies in 2020 is keeping the lights on, so data centre growth is generally being pushed back until the market enters the recovery period,” said Naveen Mishra, senior research director at Gartner.

Gartner expects larger enterprise data centres sites to hit pause temporarily and then resume expansion plans later this year or early next.

“However, hyperscalers will continue with their global expansion plans due to continued investments in Public Cloud,” Mishra said.

Globally, end-user spending on global data centre infrastructure is projected to reach $200 billion in 2021, an increase of 6 per cent from 2020.

Despite a 10.3 per cent decline in data centre spending in 2020 due to restricted cash flow during the pandemic, the data centre market is still expected to grow year-over-year through 2024.

Lockdowns from Covid-19 will prevent more than 60 per cent of planned new facilities construction in 2020, which is why data centre infrastructure revenue will decline 10.3 per cent in 2020.

“For now, all data centre infrastructure segments will be subject to cost containment measures and enterprise buyers are expected to extend life cycles of installed equipment,” informed Mishra.


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