Advancing Cloud and Data Infrastructure Markets: Strategic Directions for Low- and Middle- Income Countries

About

Advancing Cloud and Data Infrastructure Markets: Strategic Directions for Low- and Middle-Income Countries is part of a joint World Bank-IFC effort to support countries on their path to developing these markets. This report analyzes the key drivers of cloud and data infrastructure growth in these settings. It examines the business models, policies, and regulatory environment shaping the market trends as data from public and private sectors migrate to the cloud, and it explores the challenges in attracting investments.

The World Development Report 2021: Data for Better Lives underscored today’s unprecedented generation and flow of digital data and noted that much of the value remains untapped. To realize the enormous potential, data need to be supported by technologically advanced infrastructure to capture, analyze, share, and use them efficiently and effectively to benefit economies and societies.

Main Messages

Of all data generated today, less than 1 percent is analyzed and used, resulting in a significant missed opportunity to capitalize on data for social and economic growth. Because of its agility, flexibility, scalability, and reliability, cloud and data infrastructure play a critical role in leveraging data for social and economic development.

The private sector leads most cloud and data infrastructure investments globally, primarily considering market size and potential demand in investment decisions. Expansion of these markets remains uneven, adversely affecting smaller low- and middle-income economies.

The evolution of the cloud ecosystem to a more distributed and dispersed model offers a promising opportunity for low- and middle-income economies to establish themselves as significant players in the global market. Comprehensive national digital transformation strategies that prioritize cloud computing among other digital initiatives can serve as a strategic way forward.

Data centers form the backbone of cloud and data infrastructure and enable the storage and processing of large data volumes. Successful data center operations and the expansion of cloud and data infrastructure markets require a reliable and affordable energy supply and good broadband connectivity.

A good business environment—characterized by political stability, efficient time to market, a competent workforce, and access to scalable land—influences data center investment decisions.

A well-defined regulatory landscape is essential for cloud and data infrastructure market development. Safely and securely deriving economic benefits requires striking the right balance between regulatory safeguards and enablers in line with a country’s national context and priorities.

Hybrid and multi-cloud models for provisioning cloud services are becoming more prevalent because they offer performance optimization, enhanced resiliency, and greater flexibility. To enable such models, governments should ensure robust data portability and interoperability frameworks, and foster competition among players.

Managing cybersecurity risks on the cloud requires collaborative efforts by the government and private sector. Hyperscale cloud service providers have significantly increased investments in cybersecurity to meet market demand. Governments can play a role through certification and auditing requirements to manage emergent cybersecurity risks.

As cloud and data infrastructure markets grow, so does their environmental footprint. Governments are increasingly encouraging low-carbon and environmentally friendly data center practices through targeted policies and regulations.

In Depth

Full Report : English

Chapters

Chapter 1: Introduction

This report aims to help public decision-makers take stock of changing technology trends and determine opportunities to stimulate the growth of cloud and data infrastructure markets
Chapter 2: Overview

This section summarizes nine key takeaways, and the following section offers general recommendations and recommendations relevant to various countries’ maturity levels.
Chapter 3: Cloud Computing Fundamentals

This chapter describes the main characteristics of cloud computing services, their benefits and limitations, and common deployment models that organizations and governments can choose from to meet their business objectives, data security needs, and resource requirements.
Chapter 4: Cloud Computing: Growth Drivers, Main Players, and Key Trends

This chapter examines the drivers of and dynamics underpinning the global cloud computing market. It identifies major players in the industry and the trends influencing future development of the market.
Chapter 5: Data Centers at the Core of Cloud and Data Infrastructure

This chapter discusses the role and types of data centers and provides insights on market trends and the key enabling factors that affect data center investment decisions.
Chapter 6: Role of Governments in Promoting Cloud Adoption

This chapter explores the role of governments in shaping cloud and data infrastructure markets using the policies, initiatives, and strategies that they can implement.
Chapter 7: The Regulatory Landscape for Cloud and Data Infrastructure

This chapter offers guidance on regulatory frameworks for cloud and data infrastructure markets, which must strike a balance between enabling data flows and safeguarding rights.
Chapter 8: Conclusion

Although evolving demand shapes cloud and data infrastructure investments, good policies and a balanced regulatory framework can encourage private investments.
Appendix A: General Considerations for Contracting.

Advancing Cloud and Data Infrastructure Markets: Strategic Directions for Low- and Middle- Income Countries

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