India favored second-least place in setting up data centre

India is the second-least preferred destination for setting up of data centers by global companies,
according to a study conducted by Cushman & Wakefield. The country ranked at the 29th place in
the ‘Data Centre Risk Index’ study conducted among the 30 countries.

A data centre is a facility used to house computer systems and associated components, such as telecom
and storage systems. The Data Centre Risk index ranked countries based on various risk factors such as
energy costs, bandwidth, ease of doing business, cost of labor and political stability.

The US topped the list, followed by the UK, Germany, Iceland and Canada. The study said main
parameters that played deterrents to the attractiveness of India were ease of doing business, inflation,
GDP per capita and corporation tax.

However, the country ranked high on the parameters of cost of labor and sustainability. It also noted
that criteria such as quality of power and outages represents a challenge in India which is often
exacerbated by increasing IT loads.

“We would expect the growth to continue as this is also coupled with a rising domestic demand for IT
services where internet and mobile communication penetration is still moderate.

“At the same time it is important to put in place various initiatives for developing other areas such as
energy, bandwidth, improving business environment, data protection laws, etc, which can enhance the
proposition for India,” Cushman & Wakefield India Executive Director (Consultancy) Arvind Nandan said.

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