A BOOMING BUSINESS

Rollout of 5G services, global hyperscalers expanding their captive facilities and entry of new operators will ensure growth momentum for data centres

- Molly R

Data centres play a crucial role in managing critical data and are pivotal to India's digital economy, acting as a backbone for various online services. With an increasing reliance on digital technologies, data centres offer the necessary infrastructure for secure and efficient storage, processing, and transmission of large data volumes.

As India pushes its digital transformation efforts, these facilities drive innovation, boost economic growth and ensure the country's competitiveness in the global tech scene..

Mumbai is set to maintain its position as India's capital for data centres, while Noida will become a key regional hub for installed colocation capacity (IT load) by 2024, according to a report by Cushman and Wakefield. The report also predicts that total data centre capacity in India will surpass the 1 GW mark in the next three years.

Vivek Dahiya, MD, head data centre advisory team, Asia Pacific, Cushman and Wakefield, says, "Edge data centres are predicted to expand into tier-Il cities in India as established companies seek to increase their presence across the country. This growth is expected to be driven by the nationwide rollout of 5G services, expansion of global data centre operators in India, and the entry of new players in the market. Regulatory support and the push for 5G will serve as additional boosters for the sector.

 

Moreover, the trend towards green data centres and a focus on energy efficiency will also contribute to the sector's growth." GROWING IN SIZE India's data centre industry, expanding at a CAGR of around 40%, is projected to surpass 1GW by 2024. The growth is driven by the increasing demands of the IT sector and Global Capability Centres (GCCs).