Internet usage in India is going to explode with RIL 4G launch. Just get your fielding ready to catch the ball.. RIL's 4G launch will bring the data prices (home users) crashing down and India being an extremely price sensitive market will add so many new users in the coming months which would mean more demand for hosting. I run a few websites which get lots of traffic from India and I am forced to host them at Europe and Singapore locations due to lack of reliable budget hosting within India.
I would love to see atleast 4 locations in India :) With good network connectivity to Pakistan, Bangladesh and Srilanka. Thats where the growth really is. You can bite each other here in Europe and USA but in South Asia every one is growing without having to capture higher market share.. That stage is at least 20 years away.
Be where the growth is :)