Boston, MA 09/29/2014 (wallstreetpr) – A recent legislation in Russia involving data centers is expected to result in an increase of demand for data storage services. Google Inc. (NASDAQ:GOOG) and Visa Inc. (NYSE:V) as a result of the new legislation will be forced to turn to local data centers for storing any personal data involving Russian citizens.
Impact of Isolation
The legislation is expected to be of much benefit to OAO Ristelecom and OAO MegaFon (MFON), which are some of the biggest players on data centers in Russia. The legislation could swing into action as early as January 2015 meaning Google will have to accelerate plans of finding a partner for hosting data in the country. Russian has been forced to tighten regulations involving foreign companies after experiencing the worst standoff over its participation in the cessation of Crimea.
Google Inc. (NASDAQ:GOOG) is not the only company that will be affected by the new legislation; Facebook Inc. (NASDAQ:FB) and Twitter Inc. (NYSE:TWTR) are already looking for up to 1,500 additional servers to accommodate their huge data banks. Russia is trying to reduce its reliance on foreign companies after experiencing some of the worst effects for its isolation from the rest of the world.
Google Increasing Download Speeds in Russia
Foreign companies have resorted to hosting data centers in Russia to avoid being forced to terminate operations whenever sanctions are imposed. Google Inc. (NASDAQ:GOOG) has already accelerated plans to rent more data centers as it continues to increase download speeds for local content such as videos on YouTube and maps. The next step involves storing personal data on Gmail and Google Docs in local servers.
The new legislation, when fully enacted, will require internet companies to have data centers for storing personal data up and running by September 2016. The data center business in Russia is already booming as more companies continue to make the transition to the cloud.
