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Datacentres – The New Growth Opportunity

Blog: NASSCOM Official Blog

The pandemic has significantly increased the dependence on the online and the focus on digital transformation, this in turn has pushed the demand for cloud across the globe. And this shift towards cloud is driving investments into datacentres which are expected to reach ~200 billion per annum by 2025.

Global Datacentre Market Investments ($ billion)

                                 Source: NASSCOM’s Report “India – The Next Datacentre Hub

Growing Investments

The global datacentre market has witnessed significant investments over the last few years owing to strong growth in consumption of internet related services, to reach $171 billion in 2019. Moreover, these investments are expected to remain upbeat with majority of it being pushed in hyper-scale datacentres, amidst the rising demand for cloud services accelerated by digital transformation across industries.


Overall, the global market is expected to see cumulative investments of over ~$1.3 trillion during 2019-2025, with 2020 set to witness fastest growth at 3.6% y-o-y, due to demand for datacentre capacity surging post the pandemic, as more users are being pushed online.

                                 Source: NASSCOM’s Report “India – The Next Datacentre Hub

MEA, LATAM and APAC seeing majority growth

North America is the largest datacentre market by investment accounting for over 30% of the investments, with MEA & LATAM, being the fastest growing markets with the investments in the region expected to grow at CAGR 6.4% over 2019-25, followed by APAC (CAGR 3.6%).

               Source: NASSCOM’s Report “India – The Next Datacentre Hub

With growing opportunities, the market is witnessing emergence of new regional and local players, increased interest from colocation providers, real estate and private equity players.

IT Infrastructure accounts for over 75% of the total datacentre investments

IT Infrastructure which is the critical part of a datacentre accounts for over 2/3rd of the investments and comprises of servers (55% share), storage devices (32%), and network (13%). The remaining investments goes into the support infrastructure which includes electrical, mechanical and general construction.

                                 Source: NASSCOM’s Report “India – The Next Datacentre Hub

Like technology this is one segment which has seen an uptake despite the pandemic. To read more about how the pandemic impacted the global datacentre markets, which are the key global datacentre hubs and what’s in store for the India datacentre market read our recently released report “India – The Next Datacentre Hub”.


The post Datacentres – The New Growth Opportunity appeared first on NASSCOM Community |The Official Community of Indian IT Industry.

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