India’s data centre industry is poised for a period of sustained growth, driven by a diverse range of consumption and demographic trends, Nxtra by Airtel, the data centre subsidiary of Bharti Airtel, has said in a joint study with JLL India, the real estate consultancy and professional services firm. The study projects that the expansion of the Indian data centre industry will be supported by the accelerated adoption of digital infrastructure during the pandemic, rising digital usage, cloud consumption and the national 5G rollout.
Much of the industry’s growth will be centred around Mumbai and Chennai due to their business and infrastructure advantages, strategic location, and cable landing stations that are well-positioned to support and enable the growth of data centres across India.
Further, the study shows that the convergence of data protection, strong demand from cloud players, migration from captive to cloud, industry-friendly regulations, government’s digital initiatives, and investments will spearhead the ongoing growth of the industry in India.
“India’s digital transformation is expected to create an economic value of $1 trillion by 2025. Apart from existing sectors, new areas like agriculture, healthcare, logistics, jobs and skills market, e-governance and other areas, coupled with advanced technologies, will lead to significant growth of data storage and computing. The Indian data centre industry will act as the backbone, enabling India to emerge as a global hub,” said Rachit Mohan, head, Data Centre Advisory, India, JLL.
Rajesh Tapadia, CEO, Nxtra by Airtel said, “The industry is witnessing exponential growth, given India’s strategic location. Chennai with its host of infrastructure advantages will emerge as the next data centre hub after Mumbai. As the industry attains infrastructure status, data centre expansion will further accelerate and with it the inherent need for sustainable measures. Sustainability will be a huge focus for the industry.”
The report says that while the industry’s future will largely depend on coastal cities with ready access to cable landing stations, landlocked cities like Delhi NCR, Hyderabad, Bangalore, Kolkata, and Pune will also benefit from its growth.