India's Data Centre Boom: Doubling Capacity to 2,000 MW by 2026








Aayushi Mathpal

Updated 11 May,2024, 10:30AM,IST






India is on the brink of a major transformation in its digital infrastructure landscape. By 2026, the country's data centre capacity is projected to double to an impressive 2,000 megawatts (MW). This growth is not just a quantitative leap but also a qualitative one, with a significant emphasis on green energy. This expansion is set to fortify India's position as a global data hub, driven by a confluence of increasing internet usage, ongoing digitization, and a strategic shift towards sustainable energy sources.

The Drivers of Growth

1. Surge in Internet Users and Data Consumption:
India’s digital population is booming. With one of the largest internet user bases globally, the demand for data and consequently data processing and storage is skyrocketing. This surge is fuelled by widespread adoption of digital technologies, a substantial increase in mobile connectivity, and the proliferation of smart devices.

2. Government Initiatives and Digital India Campaigns:
Government policies play a crucial role in shaping the growth trajectories of infrastructure sectors. Initiatives like Digital India have been pivotal in promoting digital literacy and enhancing online accessibility. The government is also encouraging the establishment of more data centres by offering incentives for local and foreign investors, which is likely to boost capacity significantly.

3. The Rise of Cloud Computing and Big Data:
The shift towards cloud-based technologies across corporations and the increasing reliance on big data analytics have necessitated robust data centre infrastructures. Companies are increasingly moving away from on-premises data storage solutions towards colocation and cloud services, which offer greater scalability, flexibility, and cost-efficiency.

Green Energy: The Backbone of Future Data Centres

The most notable aspect of India's data centre expansion is its commitment to green energy. As data centres are typically high consumers of electricity, the focus on sustainability is critical. The Indian data centre sector is increasingly investing in renewable energy sources such as solar and wind. Additionally, innovations in cooling technologies and energy-efficient building designs are being integrated to further reduce the carbon footprint.

Sustainable Practices in Indian Data Centres:

  • Solar Power Installations: Many data centres are setting up solar farms or entering into power purchase agreements (PPAs) with solar providers.
  • Wind Energy: Leveraging India's vast potential for wind energy, especially in regions like Gujarat and Maharashtra.
  • Energy-efficient Cooling Solutions: Implementing advanced cooling solutions that reduce energy consumption drastically.
  • Building Design: Constructing buildings with better natural cooling properties and improved insulation to minimize energy use.

Implications for the Economy and Technology Sector

This expansion is expected to have profound implications for India's economy and technology sector:

  • Job Creation: The construction and operation of new data centres will create thousands of jobs across various levels of expertise.
  • Enhanced Data Security: With local data centres, data sovereignty can be better maintained, complying with regulations like the Personal Data Protection Bill.
  • Boost to Ancillary Industries: Industries such as real estate, power, and cooling solutions will see growth parallel to the data centre industry.
  • Technological Innovation: This growth promotes higher investments in R&D for developing more efficient and sustainable technologies.

Conclusion

The doubling of India's data centre capacity by 2026 represents a significant leap forward in its technological and economic landscape. This growth, backed by a shift towards sustainable practices, not only addresses the immediate needs of data handling and storage but also sets a global standard for integrating green energy solutions in the tech infrastructure domain. As the digital economy expands, the robust, sustainable backbone provided by these new data centres will be crucial in supporting India’s digital transformation ambitions.

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