Careful consideration of the various data centre types will empower businesses to optimise performance, reduce risks, and achieve cost-efficiency in the ever-evolving digital landscape
The Indian data centre industry is on the brink of a substantial investment influx, with a projected sum of approximately $10 billion expected to flow in over the next three years. This surge in capital can be primarily attributed to the growing demand for storage capacity, which has been greatly fuelled by the remarkable growth in internet accessibility. A recent comprehensive report by CII Colliers has cast a spotlight on this transformative trend, underlining the industry’s promising trajectory.
Since the outbreak of the COVID-19 pandemic in 2020, India’s data centre sector has experienced a remarkable upswing, attracting around $7 billion in investments. In seven main Indian cities—Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune, and Kolkata—the total capacity of data centres as of August 2023 is a remarkable 819 megawatts, distributed over a vast 11 million square feet of real estate. Data centres have become an essential component of the digital ecosystem due to their greater accessibility, which is one of the many causes driving this significant rise. The government’s ambitious digitisation programs have further improved the prospects for the data centre sector. The industry has become a focal point in India’s changing digital infrastructure landscape due to the industry’s widespread adoption of transformative technologies like cloud computing, the Internet of Things (IoT), and the upcoming rollout of 5G networks.
Businesses must be aware that there are multiple kinds of data centres accessible, each with a specific purpose in view. Selecting the ideal data centre is an important choice that needs to fit the objectives and requirements of the business. Which data centre solution best suits a company’s needs depends on several factors, including data security, scalability, location, and service-level agreements. Businesses need to choose meticulously whether to use an on-premises, cloud-based, or colocation data centre to guarantee that it supports their strategic goals and helps them attain maximum efficiency and cost-effectiveness while lowering risks.
Enterprise Data Centres
Enterprise data centres are purpose-built facilities that empower organisations with tailored data processing and storage solutions. These centres, housing critical hardware components, offer control, security, customisation, and increased productivity and are ideal for regulated industries and data-intensive operations. With the flexibility to scale infrastructure and the option to use third-party providers, enterprise data centres are cost-effective, secure, and efficient solutions for businesses seeking to thrive in the digital era.
Colocation & Hyperscale Data Centres
Colocation data centres offer space, equipment, and bandwidth rental from third-party providers, providing essential resources like power, cooling, and security. They connect businesses to telecom and network services, reducing costs and complexity. Benefits include secure equipment storage, resilience against power outages, and quick scalability without construction or leasing expenses. Hyperscale data centres, used by tech giants like Google and Amazon, are colossal, highly efficient facilities with superior cooling, energy efficiency, and scalability. They employ advanced networking technologies to optimize performance and lower costs through economies of scale. These facilities can swiftly adapt to changing workloads by adding computing power and hardware. Businesses can choose between colocation for cost-effective infrastructure and reliability or hyperscale for unmatched efficiency and scalability, based on their specific requirements and objectives.
Edge & Modular Data Centres
Edge data centres and modular data centres are gaining prominence in the business landscape for the distinct advantages they offer. Edge data centres, located at the network’s periphery, reduce latency, resulting in faster response times and enhanced customer experience. Their proximity to end-users ensures efficient data processing. Modular data centres, on the other hand, provide unmatched flexibility, enabling global deployment and integration with existing infrastructure. Standardized components make them cost-effective and energy-efficient, optimizing space and reducing operational costs. In summary, edge data centres excel at latency reduction and customer experience improvement, while modular data centres offer flexibility, scalability, and energy efficiency, depending on specific business needs and objectives.
Vice President-Secure Power Division, India and SAARC,
Schneider Electric
It is imperative for businesses to recognise that the data centre landscape offers diverse options to cater to their specific needs. The selection of the right data centre type should align seamlessly with a company’s strategic goals and operational requirements. Enterprise data centres are tailored for organisations seeking control, security, and customisation, while colocation and hyperscale data centres offer scalability and connectivity benefits, each suited to different business demands. Edge data centres and modular data centres are gaining prominence due to their unique advantages, addressing issues of latency and flexibility, respectively.
Ultimately, the choice of a data centre type is a critical decision that requires a deep understanding of business objectives and operational necessities. The Indian data centre industry’s growth, coupled with these diverse options, presents a wealth of opportunities for businesses to enhance their digital infrastructure and thrive in the digital era. Careful consideration of the various data centre types will empower businesses to optimise performance, reduce risks, and achieve cost-efficiency in the ever-evolving digital landscape.
