In this digital era, India is leading the way in a technological revolution driven by the world’s increasing demand for data, particularly when it comes to data centers. Over the past few years, many organisations have relied on their existing infrastructure for longer periods than normal. However, this prolonged use has resulted in aging systems that could potentially harm business operations. As businesses move towards GenAI technologies, they are realising the need to upgrade their infrastructure to ensure optimal performance and flexibility.
India’s technological infrastructure is undergoing a transformative period of exponential growth in data center capacity, thanks to an increasingly data-centric landscape. Projections indicate that the country’s data center capacity will double by 2024, fueled by a variety of factors. The digitalisation of various industries is driving an unprecedented need for robust data storage and processing capabilities, prompting Indian businesses to invest significantly in the growth of data center services.
India is home to 138 operational data centers, making it the 13th largest market for data center services worldwide. Experts predict that the Indian data center industry could potentially grow by up to US$ 8 billion by 2026. According to a report by Cushman and Wakefield, Mumbai is expected to remain the primary data center hub in India, while Noida is projected to become a notable regional center for installed colocation capacity. This expansion reflects the overall growth of the sector, with India’s total capacity exceeding 1 GW. The Indian government has laid out a detailed plan for data centers, highlighting its commitment to supporting investments and accelerating the nation’s data center expansion. This strategic vision is crucial in meeting the demands of a digital economy and strengthening India’s position as a global data hub.
Revolutionising regional connectivity through tier II and III cities
India’s data center landscape has undergone a significant transformation in recent times. One of the most noticeable changes is the decentralisation of infrastructure, with Tier II and III cities like Pune, Jaipur, and Ahmedabad emerging as key data center hubs. This shift not only addresses the pressing need for increased capacity but also offers cost-effectiveness and improved management capabilities.
Expanding into regional centers helps to distribute data centers and create a more inclusive digital infrastructure across the country. This move helps to decentralise data, ensuring greater resilience and accessibility while building a more interconnected digital ecosystem.
Sustainable solutions of tomorrow
The future of data centers is closely linked with sustainability, as these facilities account for approximately 1 to 1.3% of global energy consumption. As environmental concerns become increasingly important, industry is adopting more eco-friendly practices. This includes the use of renewable energy, innovative cooling technologies, heat reuse, and the integration of circular economy principles into modern data center design and operations.
Data centers can increase their efficiency and significantly reduce their carbon footprint by adopting renewable energy sources and innovative cooling mechanisms. In anticipation of legislative changes related to reducing carbon emissions, builders are investing in cost-effective and eco-friendly practices to meet their carbon commitments. This trend is expected to continue in 2024 and beyond as companies strive to operate sustainably while minimising their environmental impact.
Rise of edge computing
The growth of cloud computing and the effectiveness of large remote data centers indicate the need for a new computing model. Various technologies such as smart security systems, autonomous vehicles, IoT sensors, and virtual reality rely heavily on quick data processing. Edge computing plays a crucial role in ensuring immediate responses in scenarios such as unlocking doors, real-time vehicle navigation, manufacturing data reporting, and seamless experiences in virtual reality applications.
Edge computing is changing the way data is processed by moving it closer to end-users and distributing the workload across multiple devices. This is a major shift from traditional centralised data centers, as it allows for faster decision-making and better user experiences. The proliferation of edge computing signifies a significant advancement in data management, making data centers more dynamic and responsive to real-time demands.
VP – Secure Power Division, India and SAARC
Schneider Electric India
Conclusion
The future of data centers appears to be bright, with several promising trends on the horizon. These include the hybrid edge, AI-driven optimisation, and a stronger focus on sustainability. Data centers will continue to evolve to meet the growing demands of our digital world and will remain pivotal in our data-driven future. As the demand for data centers increases, it will have far-reaching effects on various aspects of digital infrastructure, such as supply chains, pricing, cooling systems, design, and power infrastructure.
India is actively shaping the future of data centers with a powerful combination of technological innovation, sustainability, and strategic expansion. By adopting these trends, India can strengthen its position as a data center powerhouse and pave the way for a more connected, efficient, and sustainable digital future.
