HOW DATA CENTERS ARE POWERING THE DIGITAL ECONOMY

On July 27, 2018, the Justice Srikrishna Committee released a draft Bill setting the framework for India’s first comprehensive law on privacy and data protection.

- Sanjay Motwani

The recommendations, which came after a year India recognized privacy as a fundamental right granted by the Constitution, has the potential to change the data center ecosystem dramatically as it is the latest in a series of proposals that seek to spur data localization in the country. As per the proposed data protection law, local data storage requirements for digital payments and e-commerce sectors are also being planned. “Due to increasing requirements of data hosting, India would need rapid establishment of data centers,” the report said.

As global players identify India as a high-growth market and place bets on the economy, the most recent case being of Berkshire Hathaway CEO Warren Buffett’s interest in the digital payment company PayTM, global businesses will find it difficult to ignore the fact that India is a fast growing market for data center services.