The data center industry in India is not just growing; it’s driving a digital revolution, positioning the country to compete globally. Fueled by escalating data storage demands, a vast pool of skilled professionals, forward-thinking government policies, and a strategic location, Indian data centers are poised to redefine international benchmarks.

In this era of relentless data generation and storage, India emerges as a dominant player in the global data center market, particularly in Noida. The industry boasts an impressive 870 MW of installed capacity, with data center developers gearing up for an additional 3,000 MW, signaling a remarkable growth rate of 300 MW per year over the next decade, as reported by Maximize Market Research.

The Indian Government’s unwavering dedication to technological progress is evident in its vision to make technology contribute 20-25% to the nation’s GDP by 2025. As businesses and individuals continue to drive the data surge, Indian data centers are well-equipped to meet their storage and processing requirements, fueling the country’s global transformation.

Where Does India Stand in the Global Data Center Landscape?

Data centers are experiencing remarkable growth worldwide, with both developed and emerging countries investing heavily in new storage and deployment facilities. In the era of digitization, India’s data center sector is surging ahead, positioning the nation as a potential global hub for data centers, including Noida and other regions focused on cloud computing. According to findings from an ASSOCHAM-EY report, a robust growth projection of $8 billion by 2026 is anticipated, propelled by innovative technologies like artificial intelligence, machine learning, and analytics.

India is poised to attain a remarkable 5% CAGR between 2019 and 2025, which is twice the global growth rate, as highlighted in a Nasscom report. Furthermore, the Indian Ministry of Information Technology is gearing up to provide incentives amounting to Rs. 15,000 crore under a national policy framework for data centers. This endeavor comes in the wake of the finance minister’s recent decision to accord infrastructure status to the data center industry in the 2022-23 budget, giving added impetus to the expansion of data centers in India.

Data Centers Playing A Key Role In Boosting India’s Digital Economy

India’s transition into a full-fledged digital economy, backed by progressive government policies, has ignited substantial investments from domestic and global data center operators. The pandemic’s influence has surged the global demand for cloud hosting services, spurring digital transformation across industries and solidifying the internet as an essential lifeline for both work and leisure.

This shift towards cloud services has triggered a surge in investments in hyper-scale data centers, with the global data center market anticipated to hit approximately $200 billion annually by 2025. To meet this soaring demand, India is on the cusp of requiring substantial investments in data center and cloud infrastructure over the next three years. The imminent rollout of 5G, the expanding use of IoT devices, data localization efforts, and widespread cloud adoption are poised to further elevate this demand.

Data centers play a pivotal role in propelling the digital revolution. The Government of India, through its Draft Data Center Policy, aims to position India as a ‘Global Data Center Hub,’ thereby offering long-term financial support for investments in the sector. Various state governments are incentivizing industry players to establish data center parks in key locations like Noida, Mumbai, and Hyderabad. The harmonious blend of technology, regulatory support, market demand, and investments is expected to usher in a period of substantial growth for India’s data center industry in the coming years.

The Indian data center market is poised to double its capacity in the near future, primarily driven by robust digitalization and increased cloud adoption. The adoption of new technologies like 5G and IoT, along with data localization initiatives by the government, are instrumental in boosting the demand for data centers in India.

Additionally, investments in the Indian market are on the rise, with a market size valued at $4.35 billion in 2021. Revenue in the Data Center market is projected to reach US$7.54 billion in 2022, and by 2027, it is expected to soar to $10.09 billion, marking a growth rate of 15.07% during 2022-2027.

The data center market is witnessing significant investments from both local and global investors, including hyperscale operators, who are motivated by the accelerated digitalization spurred by COVID-19, government initiatives, and the adoption of AI, IoT, and big data. In 2021, India welcomed 16 new data center projects and expansions, with key investors including Bharti Airtel, AWS, Colt Data Centre Services, ST Telemedia Global Data Centres India, CtrlS, NTT Global Data Centers, and Yotta Infrastructure, among others.

Notably, hyperscale operators like AWS, Google, and Microsoft are displaying growing interest in the Indian market. Google boasts cloud regions in Maharashtra and Delhi, Microsoft inaugurated its Maharashtra data center in 2021, and has signed an MoU with the Government of Telangana for another. AWS is also establishing a second data center in Telangana, in addition to one in Maharashtra.

Moreover, India is witnessing investments from several new entrants, including AdaniConneX, Equinix, CapitaLand, EverYondr, Digital Realty, Brookfield Infrastructure, and Mantra Group, who have initiated investments in Indian Data Centers. The Indian government is actively promoting digitalization through initiatives like Digital India, the classification of data centers as infrastructure assets, and the proposition of a new data localization law. These factors are set to drive the data center industry in the country.

India has set ambitious targets for renewable energy, aiming to achieve a capacity of 175 GW by the end of 2022, with 100 GW generated via solar energy. The nation’s future plans involve expanding its renewable energy generation capacity to 450 GW by 2030, with a significant reduction in fossil fuel dependency at the forefront of its objectives.

Key growth drivers:

Role of Data Centers in Empowering India’s Digital Transformation

Skilled Workforce as a Competitive Edge:

The success of India’s data center industry is underpinned by a distinct advantage: its vast reservoir of skilled IT and engineering professionals. The nation’s bustling tech ecosystem has nurtured a workforce with diverse technological expertise, making India an attractive and cost-effective destination for data center development and operations. Armed with innovative thinking and problem-solving skills, Indian data center professionals are well-equipped to compete on the global stage.

Government Backing:

The Indian government plays a pivotal role in bolstering the data center industry. This is evident through its visionary Data Centre Policy and strategic initiatives. By implementing favorable policies like tax breaks and power subsidies, the government has created an environment conducive to attracting investments and promoting industry growth. The establishment of Data Center Economic Zones and recognizing Data Centers as an Essential Service under the “The Essential Services Maintenance Act, 1968 (ESMA)” further solidify India’s appeal as a preferred destination for global data center companies. This proactive approach underscores the government’s commitment to nurturing the sector and propelling India’s data centers onto the international stage.

Furthermore, India takes pride in its impressive track record in data center security. The country has implemented stringent laws and regulations to safeguard data, ensuring data center operators adhere to rigorous standards. This robust security framework reinforces trust and reliability in Indian data centers.

Strategic Location and Robust Infrastructure:

Located at a strategic central position in Asia, India stands as an ideal hub for data centers serving the entire region. The country’s well-developed telecommunications infrastructure enables seamless connectivity and smooth operations. The strategic positioning, combined with robust infrastructure, further enhances India’s competitiveness in the global data center landscape.

The hot and humid climate in India poses cooling challenges for data centers. Nevertheless, the industry has risen to the occasion with innovative cooling solutions designed to address these environmental conditions. These advancements guarantee efficient and effective cooling, enabling data centers to uphold their peak performance.

Reliable Power Supply:

India benefits from a reliable power grid, a critical requirement for uninterrupted data center operations. Furthermore, the country’s significant renewable energy sources, including solar and wind power, offer sustainable alternatives to power these facilities, contributing to their long-term viability.

Adherence to International Standards:

Indian data centers adhere to internationally recognized standards, such as the Uptime Institute Tier Standard. This adherence ensures that these facilities meet the most stringent standards for reliability, uptime, and performance, instilling peace of mind in global businesses.

Indian data centers are poised to not only compete but excel on the international stage. With a rapidly expanding market, abundant resources, and a highly skilled workforce, India presents an enticing proposition for global businesses seeking reliable and efficient data center solutions. In the face of the ever-increasing demand for data centers, India’s emergence as a major player in the global data center market is on the horizon. Guided by a commitment to quality, innovation, and compliance, Indian data centers are well-positioned to steer the global digital transformation of businesses.

India’s Remarkable Data Center Growth:

The growth of India’s data center market is nothing short of extraordinary. This exponential expansion is fueled by the nation’s data center market value, projected to surge from $4.35 billion in 2021 to an estimated $10.09 billion by 2027, boasting an astonishing Compound Annual Growth Rate (CAGR) of 15.07% throughout 2022-2027. Moreover, the respected rating agency CRISIL predicts that by 2025, India’s data center capacity is set to double, reaching a range of 1,700 to 1,800 MW.

As the world witnesses the generation and storage of unprecedented volumes of data, Indian data centers are poised to be the driving force behind the global digital transformation of businesses, contributing significantly to India’s journey towards becoming a technology-driven powerhouse in the global economy.

Data center Noida services provided by Cyfuture Cloud

Colocation of data center Noida services offered by Cyfuture Cloud refers to the practice of housing and managing your own servers, storage, and IT infrastructure within Cyfuture Cloud’s data center facilities. This means that your organization’s hardware is physically located in Cyfuture Cloud’s secure and well-maintained data centers.

By opting for colocation services, you can take advantage of the data center’s robust infrastructure, including power, cooling, security, and connectivity, while maintaining control over your own hardware and software. This can help you achieve cost savings, enhance security, and ensure high availability for your IT systems without the need to build and manage your own data center facility. It’s a solution that offers both the benefits of a top-tier data center Noida and the autonomy to manage your equipment as you see fit.

Wrapping up 

The horizon of the Indian data center market appears promising. As the Indian economy thrives and digital technologies gain widespread acceptance, the significance of data centers in metropolitan cities and data center Noida is set to escalate, bolstering the nation’s progress. With an increasing dependence on digital connectivity, demand is expected to surge, particularly with the impending launch of 5G and the growing adoption of IoT-connected devices. Given the right policy framework, India holds the potential to emerge as a global frontrunner in data center development and utilization.

Frequently Asked Questions (FAQ)

1. Why does India need massive data centres?

As businesses transition to the cloud, sectors like banking, financial services, and insurance (BFSI) and government are at the forefront of driving demand. They are closely followed by e-commerce, media, manufacturing, and retail, contributing to the thriving data center market in India. This growth is drawing significant investments into hyperscale data centers.

2. What are the five core elements of a data Centre?

A data center architecture comprises various key components, including routers, switches, firewalls, storage systems, servers, and application-delivery controllers.

3. How many servers are required in a data center?

A small, on-premises data center might house approximately 1,000 servers. In contrast, most data centers are significantly larger, with a more common server count of around 100,000.