Indian DC market is poised for continued growth

India's data center market is expanding rapidly, bolstered by increasing digitalization, rising internet penetration, and the growing use of cloud services. Major global and local companies are investing heavily in the sector. 

As there is a surge in the digital initiates, enterprises are seeking future-ready datacenters to enable efficiency, scalability, security, and interconnected designs.
 
For instance, Amazon Web Services (AWS) has announced a $12.7 billion investment to expand its data centers in India, while Adani Enterprises plans to invest over ₹5,000 crore in a new 100 MW data center in Telangana (IndianWeb2).  At the same time, Google and NTT have substantial projects underway, further fuelling the market's growth.

 
However, the market is competitive and fragmented, with leading players including Equinix, NTT Ltd, Nxtra Data (Bharti Airtel), Sify Technologies, Web Werks. These companies, along with others like CtrlS Datacenters and Yotta Infrastructure, are expanding their infrastructure to meet the growing demand. Maharashtra, particularly Mumbai, is the largest market, benefiting from robust digital infrastructure and strategic location advantages.
 
There is increasing demand for robust hardware infrastructure, which includes servers, network equipment, and cooling systems, that is driving the market growth. The sector is also seeing increased adoption of edge computing and co-location facilities, especially in Tier 2 cities, enhancing regional digital infrastructure.
 
At the same time Data Centers face challenges like,  as the Data centers consume significant amounts of energy, and improving energy efficiency is crucial to reduce operational costs and environmental impact. Implementing green technologies and renewable energy sources is essential.
 
Secondly, High-speed internet and data transfer capabilities depend on a well-developed fiber optic network. Expanding this infrastructure, particularly in rural and semi-urban areas, is necessary to support data center operations.
 
Thirdly, with the increasing volume of data being processed and stored, robust cybersecurity measures are vital to protect against breaches and cyberattacks. Ensuring compliance with data privacy regulations and building systems that protect user data from unauthorized access is crucial for gaining user trust and meeting legal requirements.
 
At the same time, sustainability is becoming a critical focus, with companies investing in renewable energy solutions to power their data centers. For example, AdaniConnex, a joint venture between Adani Group and EdgeConneX, is committed to developing 1 GW of data center capacity powered by renewable energy over the next decade.
 
Overall, the Indian data center market is poised for continued growth, driven by digital transformation initiatives, strategic investments, and advancements in technology infrastructure.

Ms. S Mohini Ratna - Editor VARINDIA