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As digital transformation accelerates, developing economies are experiencing a surge in demand for cloud services, IoT, and edge computing, driving the need for efficient data management solutions. Furthermore, government initiatives to promote digitalization and attract foreign investment in IT infrastructure make these markets highly attractive. The lower operational costs and availability of space in developing countries also enable companies to build and expand data centers more economically. By establishing a presence in these regions, DCIM providers can tap into a large, growing market while fostering long-term customer relationships.
For instance, in June 2024, Equinix announced that it is expanding in India with a new data center in Chennai, set to launch the first phase by late 2024. The CN1 International Business Exchange (IBX) facility, located in the SIPCOT area of Siruseri, will eventually support 4,950 cabinets, with an initial phase providing 850 cabinets. Equinix is investing USD 65 million in this four-story data center, which spans six acres. The company first entered the Indian market by acquiring GPX Global Systems, including two data centers in Mumbai, in 2021. This Chennai expansion follows the recent opening of another IBX data center, MB4, in Mumbai.