India the second most risk country for data centers: Report

India emerged as the second most risk ridden data centre among the top 30 countries in a study conducted by Cushman & Wakefield and Hurleypalmerflatt. The ‘Data Centre Risk Index’ study assess the risks to global data centre facilities and international investment in business critical IT infrastructure.

The restriction that looked to be deterrents to the magnetism of India and on which the country scored the lowest were ease of business, inflation, GDP per capita and corporation tax. India, however, ranked high on the parameters of cost of labor and sustainability. Criteria such as quality of power and outages represent a challenge in India which is often exacerbated by increasing IT loads.

According to Arvind Nandan, executive director, coIndiansultancy, India Cushman & Wakefield, “India and key Asian economies remain preferred locations for data centers and have witnessed a growth in demand owing to various advantages. 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. Investment by overseas players continues showing confidence in the future potential of India. 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.”

With cloud computing, IT companies are spending more money on new space for data centers. Recently there has been criticism of several large technology companies for their supposed reliance on highly polluting coal to power their data centers. Thus, companies are looking to locate their data centers in the Nordic countries as they opt for renewable energy and carbon neutrality.

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