India has been ranked as the second most risk-ridden location for data centre operations in a study of 30 countries conducted by Cushman & Wakefield and hurleypalmerflatt.

The USA ranked the highest in the Data Centre Risk Index that evaluated the risks to global data centre facilities and international investment in business.

While India ranked high on ‘cost of labour’ and ‘sustainability’, it scored the lowest on ‘Ease of Business’, ‘Inflation’, ‘GDP per Capita’ and ‘Corporation Tax’. Quality of power and outages represent a challenge which is often exacerbated by increasing IT loads.

The index ranks countries according to the risks likely to affect the successful operation of a data centre, on factors such as energy costs, connectivity, and the likelihood of natural disasters or political instability.

According to the report, more companies are looking to locate their data centres in the Nordic countries as they opt for renewable energy and carbon neutrality.

The U.S. retains its first place ranking and is considered the lowest risk location for building and operating a data centre in the world followed by the UK. Germany and Canada remain in the top five. Hong Kong, ranked 7{+t}{+h} is the lowest risk destination in Asia, followed by South Korea, positioned 13{+t}{+h} overall.

Keith Inglis, partner in the EMEA Data Centre Advisory Group at Cushman & Wakefield, said: “We are seeing, certainly in the data storage market, the rise of the Nordics. This may, in the future, dilute the market share from the traditional centres in Europe. Google has built a facility in Hamina, Finland and Facebook is constructing a substantial new data center in Lulea, Sweden. The cool climate is ideal for free cooling technologies and the abundance of renewable power and water make this region an increasingly attractive option. Iceland, ranked fourth is a new entrant to our Index and is the highest ranked of the Nordic counties.”

Stephen Whatling, Global Service Director at hurleypalmerflatt, said: “Indonesia, India and Brazil are all considered growth markets, but with barriers to entry, regulated markets and high energy costs they score poorly relative to the more established economic markets. Connectivity is also a problem but as these markets continue to be invested in and the infrastructure becomes more developed we would expect them to rise up the rankings.”

alka.k@thehindu.co.in

(This article was published on August 7, 2012)
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