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Why Indian Data centres are optimally placed to compete globally

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By Pinkesh Kotecha, MD & Chairman, Ishan Technologies

The Indian data center industry is not merely witnessing growth; it is igniting a digital revolution that propels the nation to compete on a global scale. Driven by surging data storage demands, a vast pool of skilled labor, progressive government policies, and a strategic location, Indian data centers are primed to redefine international standards.
In this era of relentless data generation and storage, India emerges as a commanding force in the global data center market. With an estimated 870 MW of installed capacity, the industry’s rapid progress has been remarkable. Data center developers are addressing a pipeline of over 3,000 MW, indicating a staggering 300 MW per annum growth rate over the next decade, as per Maximize Market Research.

With an unwavering commitment to technological advancement, the Indian Government, in its visionary quest, has set a goal of making technology contribute 20-25% to the nation’s GDP by 2025. As businesses and individuals continue to fuel the data surge, Indian data centers stand ready to cater to their storage and processing needs, fueling the nation’s transformation on the global stage.

Key growth drivers:

Skilled Labor: A Competitive Advantage:
India’s data center industry thrives on a unique advantage—its abundant pool of skilled professionals in the IT and engineering sectors. The nation’s bustling tech ecosystem has cultivated a workforce equipped with diverse technological expertise, making India an attractive and cost-effective destination for data center development and operations. With their innovative thinking and problem-solving skills, Indian data center professionals are well prepared to compete on a global scale.

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

Moreover, India boasts a commendable 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. The robust security framework reinforces trust and reliability in Indian data centers.

Strategic Location and Robust Infrastructure:
Situated at a central location in Asia, India serves as an excellent hub for data centers catering to the 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.

India’s hot and humid climate presents cooling challenges for data centers. However, the industry has responded with innovative cooling solutions tailored to tackle these environmental conditions. These advancements ensure efficient and effective cooling, allowing data centers to maintain optimal performance.

Power Availability:
India benefits from a reliable power grid, a crucial 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.

International Standards Compliance:
Indian data centers adhere to internationally recognized standards, such as the Uptime Institute Tier Standard. This compliance ensures that these facilities meet the highest benchmarks in terms of reliability, uptime, and performance, providing global businesses with peace of mind.

Indian data centers are poised to compete and excel on the international stage. With a burgeoning market, abundant resources, and a highly skilled workforce, India offers an attractive proposition for global businesses seeking reliable and efficient data center solutions. As the demand for data centers continues to soar, India’s ascent as a major player in the global data center market is imminent. With a focus on quality, innovation, and compliance, Indian data centers are poised to drive the digital transformation of businesses worldwide.

The growth of the Indian data center market is nothing short of remarkable. This exponential growth is fueled by the nation’s data center market value, which is expected to soar from $4.35 billion in 2021 to a projected $10.09 billion by 2027, boasting an astonishing compound annual growth rate (CAGR) of 15.07% throughout 2022-2027. Additionally, CRISIL, the esteemed rating agency, predicts that by 2025, India’s data center capacity will have doubled to between 1,700 and 1,800 MW.

As the world generates and stores unprecedented amounts of data, Indian data centers are primed to drive the digital transformation of businesses worldwide, contributing significantly to India’s journey towards becoming a technology-driven powerhouse in the global economy.

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