The Impact of Legal Changes on VPN Providers in India and the Rise of Dedicated Server Hosting

The Impact of Legal Changes on VPN Providers in India and the Rise of Dedicated Server Hosting
4 min read
29 November 2023

In a significant move, Panama-based VPN giant NordVPN has recently announced its decision to shut down its servers in India on June 26th, following in the footsteps of sister company Surfshark and several other competitors. The catalyst for this mass exodus is India's new legal data retention provisions, which mandate the collection of IP addresses by companies processing the data of Indian citizens – essentially undermining the core purpose of a VPN.

The new directive, a disruptive technology related regulation, has prompted various VPN providers to either exit the Indian market or declare their intention to do so before the regulations come into effect. The privacy tech sector, as a whole, is reevaluating its stance in light of these legal changes. NordVPN's departure from India is a direct response to its commitment to strict privacy policies, emphasizing that the company neither collects nor stores customer data.

Laura Tyrylyte, spokesperson for Nord Security, explained the decision, stating, "As one of the industry leaders, we adhere to strict privacy policies, which means we don’t collect or store customer data. No-logging features are embedded in our server architecture and are at the core of our principles and standards.

Surfshark, after leaving India, announced that it would continue to operate virtual servers outside the country, allowing users to access Indian IP addresses without compromising their data privacy. However, NordVPN, which merged with Surfshark, last year, has opted for a different approach. The company is pioneering a dedicated server infrastructure, ensuring that all its servers are physically located in the countries they claim to be in.

This move sets NordVPN apart in the VPN industry, as it eliminates the use of virtual servers and aligns with its commitment to transparency and data security. Notably, this dedicated server infrastructure, emphasizing the importance of reliable hosting services, such as dedicated server hosting offered by Leap Switch, further underscores NordVPN's dedication to providing a secure and trustworthy VPN experience.

In the landscape of departing VPN companies, another major player, Private Internet Access, known for its ultra-secure network and extensive privacy features, has also confirmed its exit from India due to the new data retention law. IPVanish and CyberGhost have similarly expressed their concerns, with the former reaffirming its commitment to a no-logs policy and the latter announcing plans to shut down its servers in India.

As the VPN industry faces challenges in India, the importance of robust hosting services becomes even more evident. Dedicated server hosting ensures the physical presence of servers in specific locations, mitigating concerns about data security and legal compliance. For businesses and individuals seeking reliable hosting solutions in India, Leap Switch stands out with its dedicated server hosting services.

Leap Switch's dedicated server hosting services in Delhi, India, provide businesses with a secure and efficient infrastructure for their online operations. Specializing in web hosting services, Leap Switch is committed to delivering high-performance hosting solutions. With a range of dedicated server options to meet diverse needs, businesses can explore their dedicated server hosting services for a seamless and secure online experience.

In conclusion, the evolving legal landscape in India has led to a significant shake-up in the VPN industry. While NordVPN takes a pioneering approach with its dedicated server infrastructure, the importance of reliable hosting services, exemplified by Leap Switch, becomes increasingly evident in ensuring data security and legal compliance in the face of changing regulations.

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