The evolution of fintech 2.0 has also meant that most products are backed by AI and data – with fintech companies working solely on improving the quality of data and AI for the banking industry.
In the process, the rapid pace of growth in fintech has also led to growing demand for data centres and cloud services.
According to JLL, India’s data centre sector will require investments of $3.7 billion over the next three years in order to fulfill the 6 million square feet greenfield development opportunity for the industry.
In a report titled ‘India Data Center Market Update', the report said that as the data centre landscape continues to evolve, the industry is expected to grow exponentially to reach 1,007 MW by 2023 from its existing capacity of 447 MW. With growing reliance on tech sectors and digital connectivity, demand is likely to rise further due to the imminent rollout of 5G, IoT-linked devices, data localisation and cloud adoption.
“India’s co-location data center industry witnessed unprecedented absorption of 102MW during 2020, notching higher absorption than most key markets of Europe and America. Fueled by longer-term trends of rising cloud adoption, increasing digitalisation and progressive legislation, we anticipate increased demand for colocation space nationwide,” said Rachit Mohan, Head, Data Center Advisory (India), JLL.
Rising demand is also leading operators to pursue ambitious expansion plans, while some are adopting the acquisition route to enter Indian markets. Various policies and reforms brought in by the government with an aim to turn India into a 'Global Data Hub' has provided necessary measures to achieve this goal.