As the digital economy in India grows at a breakneck speed, attention is increasingly being focused on the nation’s Tier-2 and Tier-3 cities. These emerging business centres are witnessing an explosion in demand for real-time digital services, cloud security, and low-latency infrastructure, leading top players to re-design their data center strategies.
In an exclusive conversation with Express Computer, Vipin Jain, President – Datacenter Operations at CtrlS Datacenters, discusses how the company is spreading its wings to smaller cities in order to capitalise on the next wave of digital growth. He mentions CtrlS’ intentions to invest in over 20 Tier-2 cities in the next three years, with projects in cities such as Patna, Bhopal, and Bhubaneswar already being implemented.
From providing enterprise-level uptime in areas with limited infrastructure, to integrating green technologies and developing local skills, Vipin draws a visionary but realistic blueprint. He also explains how these decentralised data centers will be instrumental in serving industries such as BFSI, healthcare, and e-governance, while driving India’s overall digital and sustainability agendas forward.
This interaction provides a down-to-earth, behind-the-scenes glimpse into CtrlS’ expansion plan and why the next data center boom in India might very well start far away from the metros.
What strategic factors are driving CtrlS to prioritise Tier-2 cities for data center expansion, and how do these align with the company’s long-term vision for digital infrastructure leadership in India?
We are prioritising Tier-2 and Tier-3 cities as part of its broader strategy to decentralise India’s digital infrastructure, support the rapid data demand growth beyond metros, and strengthen regional digital ecosystems. Factors driving this include rising digital adoption in non-metro areas, increased demand for edge computing, regional cloud services, and localised data hosting for industries like BFSI, healthcare, and government services. The rise of affordable smartphones and reduced data tariffs has significantly improved broadband access and digital engagement in areas beyond Tier-1 cities. CtrlS’ Tier-2 facilities, like those in Patna, are already seeing nearly full utilisation, reflecting the change in demand for data hosting. The move aligns with our long-term vision to democratise digital infrastructure access and maintain leadership as India’s largest Rated-4 data center operator.
Furthermore, government policies like data localisation mandates, initiatives like the IndiaAI Mission, and state-level incentives encourage local data center investments. We are strategically leveraging these policies to establish a strong presence in Tier-2 and Tier-3 cities. As part of this growth strategy, CtrlS aims to expand into 20+ such cities over the next three-four years, securing over 100 MW of edge market capacity. We have already acquired land in key locations like Bhopal, Ahmedabad, Guwahati, Nagpur, and Bhubaneswar, aligning with their broader infrastructure portfolio.
From an operations perspective, how does CtrlS plan to ensure high availability, uptime, and performance parity in Tier-2 data centers, especially in regions with infrastructure or connectivity constraints? What role does innovation in design, automation, or edge computing play here?
Our operational model emphasises Rated-4 certified infrastructure, even in Tier-2 markets, ensuring zero downtime, redundancy, and enterprise-grade availability. This strategy involves utilising the N+N power redundancy architecture similar to metro data centers, like dual-feed grids, onsite N+N diesel generators, and gas-insulated substations (GIS), wherever possible.
We have an exceptional track record in operational excellence, providing 99.995% Guaranteed Uptime with only one SLA penalty in history, demonstrating our ability to maintain consistent service quality across diverse locations. This reliability is achieved through our proprietary CORE Infinity Operational Excellence Framework and comprehensive operational systems that include detailed SOPs, EOPs, MOPs, checklists, guidelines, along with strong processes for change management, incident management, and problem management.
To manage potential infrastructure and network limitations in these regions, we leverage our managed services, cloud connect, metro connect, and SD-WAN solutions to guarantee consistent, secure connectivity. We also utilise SD-WAN overlays and dual-ring fiber topologies to ensure sub-millisecond failover between regional PoPs, providing robust traffic management.
Our edge data centers in cities like Lucknow and Patna serve as operational testbeds for broader regional expansions. These locations help reduce latency and improve localised content delivery and processing capabilities in Tier-2 markets, making them integral to the nation’s digital transformation journey.
Innovation plays a pivotal role. CtrlS incorporates AI-enabled, high-density computing infrastructure, advanced cooling technologies, real-time monitoring, and automation to maintain operational efficiency and support intensive AI/ML workloads.
Sustainability has become a cornerstone of data center development today. Could you share how CtrlS is integrating energy-efficient practices and green technologies into its upcoming Tier-2 facilities? Are you adopting renewable energy, advanced cooling systems, or targeting IGBC/LEED certifications?
We have embedded sustainability into its core operations, targeting Net Zero by 2040. The company’s Tier-2 expansions will adopt green building standards, aiming for IGBC and LEED certifications. CtrlS already operates a 50 MW solar park near Nagpur and will add another 50 MW soon, and is replicating similar renewable initiatives in Karnataka and Uttar Pradesh to power upcoming facilities. Advanced cooling systems — including AI-managed and liquid cooling for high-density deployments — are central to minimising energy usage. Additionally, the company practices water conservation, E-waste management, and has achieved multiple national and international recognitions for its sustainability leadership.
Our sustainability commitment is evident through its industry-leading 1.35 PUE. Our environmental initiatives have already eliminated 95,000 MT of carbon dioxide, and we have established clear sustainability milestones, including plans to achieve >50% RE across India by 2025. We are also focused on water conservation, aiming to recycle 10 million tons of water by 2030. Additionally, we plan to use 100% recycled water for all our data centers, helping our Edge facilities uphold similar environmental standards as metro ones. We also have 21,000+ hours of employee training towards sustainability, ensuring our workforce remains at the forefront of industry best practices regardless of location.
Tier-2 expansions often present unique challenges in terms of skilled manpower and ecosystem maturity. How is CtrlS addressing talent acquisition, skilling, and local vendor enablement in these regions?
We are proactively developing a local talent pipeline by investing in training and certification programs tailored for Tier-2 and Tier-3 city operations. The company facilitates training to its manpower to provide technical expertise in datacenter management, IT infrastructure services, and other critical areas.
Additionally, we have been recognised as a Great Place to Work for seven consecutive years, reflecting its commitment to creating a conducive environment for attracting and retaining top talent across all its locations. To strengthen local vendor networks, CtrlS relies on an extensive ecosystem of over 300+ vendors, fostering strong regional partnerships. We also employ a strategic staffing model between full-time employees (FTEs) and contractors, allowing us to balance local hiring with specialised expertise where needed.
Looking ahead, how do you see CtrlS’ Tier-2 data centers contributing to India’s broader digital goals such as enabling edge computing, enhancing regional cloud access, and supporting mission-critical industries like BFSI, healthcare, and e-governance?
Our Tier-2 data centers are strategically positioned to support India’s national digital ambitions. By hosting edge computing infrastructure in regional hubs, CtrlS will enable low-latency services essential for mission-critical industries like BFSI, healthcare, and public services. Specific deployments in Tier-2 cities like Patna and Lucknow, with further expansions planned in GIFT City (Ahmedabad), Bhubaneswar, and Guwahati, underscore this commitment to building a robust, geographically distributed digital infrastructure. We are also investing in AI-ready infrastructure, with planned facilities in cities like Bhopal, designed to meet the needs of GPU-intensive applications and offer high-performance AI infrastructure to enterprises, public institutions, and hyperscalers.
These facilities will also expand regional cloud accessibility, facilitating faster, reliable, and compliant data processing for enterprises, startups, and government projects. Additionally, establishing data centers in Tier-2 cities supports data localisation and compliance efforts, ensuring that regional users’ data remains geographically close, optimising security and performance. This is particularly crucial as industries increasingly seek to comply with local data residency requirements. This distributed model supports initiatives like Digital India, e-governance, and the country’s growing appetite for AI, 5G, and IoT-powered applications.