Ease of cross-border data flow to push data centre investments in India: Report


New Delhi: Driven by friendly cross-border data flow, the data centre capacity in India, Indonesia and Malaysia is likely to increase at a compound annual growth rate (CAGR) of between 10-25 per cent over the next five years, a report showed on Monday.

Peoples Career

Investing in data centres will allow providers such as telcos and real estate companies to diversify their revenue and assets, according to the report by 451 Research, part of S&P Global Market Intelligence.

“There are risks, however, given the capital intensity of the business. Local partnerships and prudent expansion will be key to containing emerging-market risk including evolving regulation, the availability of stable interconnectivity, and power supply infrastructure,” it added.

MS Education Academy

India and Indonesia have clarified their data protection policies and loosened restrictions on cross-border data flow. The aim is to support foreign investments and align with policies to grow a digital economy.

“The new data privacy bill draft in India suggests easing cross-border data transfer,” the report noted.

According to experts here, the Digital Personal Data Protection bill 2023 will enable easier cross-border data transfers and optimise the storage infrastructure.

The Bill allows data flow to all jurisdictions by default, unless prohibited.

In contrast, Singapore will grow at a modest pace, said the report. This is because it is a more established market with constraints over land and power supply.

“Data centres form a rising asset class in South and Southeast Asia. Rapid digital transformation, accelerated by the pandemic, is fueling a surge in demand for data processing and data storage capacity among consumers and enterprises alike,” the report said.

So-called hyperscalers such as large internet service providers, cloud and network service providers and multimedia companies are also driving higher data demand to expand their business and reduce network latency.

“That said, data centre investments are capital intensive and take time to generate income. This could pressure the balance sheets of providers. Data center providers could also face higher execution risks as they expand into less mature markets in the region,” the report noted.

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest  Business News Click Here 

Read original article here

Denial of responsibility! Rapidtelecast.com is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
Leave a comment