The Indian data center industry stood at 499 MW IT load in H1 2021 and is likely to see another strong year of demand growth with commensurate supply. The capacity is expected to double to 1008 MW IT load by 2023.

The data center industry is expected to continue a strong growth trajectory in the coming years, mainly led by the structural pressures from industry-friendly regulations, the digital initiatives and investments by the government, the rollout of 5G, increasing use of cloud services and digital use. Furthermore, much of the industrial growth will occur around Mumbai and Chennai due to their business and infrastructure advantages, strategic location and cable landing stations, Airtel’s Nxtra and JLL said in a joint study.

The Indian data center industry stood at 499 MW IT load in H1 2021 and is likely to see another strong year of demand growth with commensurate supply. The capacity is expected to double to 1008 MW IT load by 2023.

Cloud, data center and telecom players are adopting different strategies to capture a slice of digital growth. The study said cloud players, with self-build plans, were acquiring lots in new locations in line with their strategies. Several state governments have announced policies to provide incentives for setting up data centers. In the recent budget, infrastructure status was assigned to the data center industry. This will make it more cost competitive with access to long term funds and lower rates.

The report highlighted that while the future of the country’s data center would largely depend on coastal cities like Mumbai and Chennai with easy access to cable landing stations, landlocked cities such as Delhi NCR, Hyderabad, Bengaluru, Kolkata and Pune will also benefit. NCR-Delhi has witnessed growth in recent years due to regulatory incentives and the potential for high demand from government organizations setting up a public community cloud.

Pune has also emerged as a redundancy option for Mumbai due to its proximity and better risk profile as it is landlocked.

On the other hand, Bengaluru has a higher share of on-premise data centers managed by internal centers of global and IT/ITeS players.

Nxtra by Airtel has announced an investment of Rs 5,000 crore by 2025 to scale up its network of 11 large and 120 edge data centers, fully integrated with Airtel’s global submarine cable network and landing stations. The investment will also be used to build data center parks in key metro cities. It will triple Nxtra through Airtel’s installed capacity to over 400 megawatts (MW). It has commissioned three of its own solar power plants to generate green energy and power its data centers and aims to achieve 50% of its power needs from renewable energy sources over the next 12 months.


This post Data Center Industry Continues Rapid Growth Path: Report was original published at “https://www.financialexpress.com/industry/technology/data-centre-industry-to-continue-on-high-growth-path-report/2462273/”

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