From Storage to Services: Can India’s Data Center Boom Catalyze Tech Services Growth?

India's digital backbone is undergoing an unprecedented transformation, fueled by the explosive growth of its data center industry. This is a profound shift beyond infrastructure, creating powerful ripple effects across the entire technology services sector positively influencing demand for tech services, revenue, strategic partnerships, and workforce evolution. Our point of view, "From Storage to Services: Can India’s Data Center Boom Catalyze Tech Services Growth?" uncovers these multi-layered synergies. It offers a forward-looking lens, mapping the current data center landscape and charting how the correlation between these segments will evolve over the next two to five years.

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Key Findings

All the leading data center players in India agree that data center growth will lead to an increase in demand for tech services in the medium term (3-5 years)
82% respondents expect data center growth to have a high impact (Around 20%) on tech services revenue growth
82% respondents also expect data center proliferation to have a higher impact on domestic tech market revenue growth

Cybersecurity, cloud and cooling, power and physical infrastructure services to account for ~50% of demand
Job roles like cybersecurity expert, cloud infrastructure engineer and AI/ML engineers expected to be highly in demand
AI-driven automation, skills in virtualization and containerization and knowledge of hybrid and multi-cloud architecture are top 3 technical skills needed over the next 3-5 years

Strategic alliances, managed services and JV/equity partnerships to be top 3 collaborative models
However, limited domain knowledge in data centers, concerns over data security and lack of specialized solutions emerge as top 3 challenges in increasing partnerships

Cloud infrastructure and migration services, AI-driven data center management and cybersecurity and zero-trust architecture emerge as top 3 future growth areas for tech service providers
To leverage these, tech service providers are encouraged to focus on devising strong collaboration models spanning infrastructure to AI services, develop specialized solutions and focus on offering end-to-end solutions in cloud, AI, and cybersecurity with emphasis on sustainability and energy efficiency.

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