The data center in the last few years has evolved as one of the crucial themes of India’s IT infrastructure. All due to the establishment of the digital economy propelled by enhanced internet connectivity and government-led economic reforms such as Digital India, new-age requirements for affordable, highly dense and efficient data centers are more than ever before in India. But still, this growth brings about its own set of challenges.
Importance and Growth of Data Centers in India
India has been one of the most rapidly developing technology markets across the global front and this certain data centre is not an exception. Internet users in India are predicted to exceed 800 million by 2023 making India the second largest Internet user in the world. This, in turn, engulfs a huge number of users, which in return produces a large amount of user data that should be properly processed, stored and regulated. Therefore, there is a need for quality Data center in India
Over the last couple of years, there has been vast growth in the industry related to the data centre in India. The details gathered as per industry records estimate the market of data centres in India to be $4. 5 in the year 2020 and is estimated to show a CAGR of 12% during the year 2021–2026. This growth is attributed to factors such as cloud computing, increasing demand for electronic commerce, artificial intelligence and data analytics.
NTT, HostDime, STT Telemedia and some of the other global players in this industry have identified the growth potential of the Indian market and have invested heavily in setting up world-class data centres in India. These facilities are planned to be opened in key locations like Mumbai, Hyderabad and Chennai which have stable power supply and fibre connections with nearby business centres.
Challenges Facing Data Centers in India
Despite the impressive growth, the data center in India industry faces several challenges that need to be addressed to ensure sustained development.
- High Power Costs: The factor that causes so much pressure on existing and potential data centre owners in India is the cost of electricity which forms a high percentage of the operational costs. But the cost of power in India is relatively higher compared to other countries which also increases the cost of managing larger data centers. To counter this, many operators are looking at options like solar and wind for their energy requirements to cut down their reliance on conventional energy.
- Infrastructure and Connectivity Issues: As with most emerging markets the larger cities such as Mumbai, Chennai and Bangalore are reasonably well equipped while the rest of the country still struggles with issues of connectivity and power. As much as this fosters the scaling up of data centers in the India network to tier two and tier three areas, which are important for the decentralisation of data, it poses some challenges.
- Environmental Concerns: The other challenge includes the effects of data centers on the environment of India. The energy used in data centers is a considerable source of carbon emissions, which are a cause for concern. Such as the requirements for measures that can help to save energy, including energy-saving technologies and implementation of green building services.
- Regulatory Hurdles: The other potential problem of data centers in India is the ability to keep up with the regulations within the nation. Operators have to adhere to a number of local and national laws governing data protection, security and environmental issues, which may be time-consuming and may prove expensive.
Future Outlook
It is clear that data centers are set to grow in the future in India, and this aspect holds a lot of potential in the years to come. The advanced data center will be more needed in India as the country lies on the path of turning into a digital platform for the entire world. To meet this demand, it is crucial that the local industry plays itself up to the challenge and brings to the table new technologies that are more appropriate for building sustainable infrastructure. Engaging more closely with the government to understand what changes in the current political environment would benefit the entire region.
Expansion of investment in AI, machine learning, and edge computing will strengthen the robustness of the data center in India and will equip the need for expansive data requirements of the digital economy. By committing to these developments, India has an opportunity to consolidate its standing in the new world’s data centres market.
In conclusion, the growth of data centres in India has become proof of India getting into more of a digital world. But, considering the challenges that the industry faces in terms of power costs, infrastructures, environmental impacts, and regulatory measures, it will be vital to push for evolution and sustain development.
