Data centre operators are increasingly investing in large-scale projects | PR Handout
India’s data centre market continues to grow robustly, with the total capacity projected to rise to 2 GW by 2026. Cloud computing, technology advancements, 5G rollouts and the digitalisation of BFSI continue to be the demand drivers with Artificial Intelligence (AI) workloads to ramp this demand up further. These growth drivers will push the India data centre market value to 11.6 billion USD by 2032.
Here are a few key trends that could be taking things ahead:
Key trends in data centres
So what are the key trends that will change the cloud, AI and IoT sector ahead of 2025? Here’s a list of trends that you need to look out for:
Large Data Centre Campuses
Data centre operators are increasingly investing in large-scale projects with capacities of over 100+ MW, specifically in Navi Mumbai. Apart from Mumbai, Chennai is another preferred market for data centre operators to set up facilities. Hyderabad will also see significant hyperscaler capacity development in the next few years.
Creation of New Availability Zones & Micro-markets
Due to the scarcity of suitable land parcels and the exponential rise in land prices in the existing DC clusters, the focus is on exploring alternatives slightly away from the conventional hubs in these cities.
AI-led Data Centre Demand Surge & Infrastructure Changes
As per NASSCOM, India’s AI market is expected to grow at a CAGR of over 20% between 2023 and 2028. The average rack density is anticipated to increase up to 30 KW/rack compared to the existing 8-10 KW/rack server density.
Advanced & Sustainable Cooling Solutions
This includes incorporating cooling techniques like liquid immersion cooling which offer significant power efficiency and substantial cost savings. The upcoming hyperscale and purpose-built AI data centres are expected to adopt this technology.
Edge Data Centre Facilities Development
These facilities are expected to manage the growing data traffic from tier II and tier III cities and support applications like OTT (over-the-top) platforms, IoT (Internet of Things) devices, gaming, Smart Cities, etc. with reduced latency and a better consumer experience.
Migration from On-Premise to Cloud
Cloud computing reduces costs and maintenance needs associated with traditional IT infrastructure. This also offers improved scalability and better security solutions, and will, in turn, accelerate data centre demand from cloud companies.
Skill Development & Enhancement of Talent Pool
Efforts on training programs and learning centres for skill development in hardware, software and data centre operations and IT infrastructure management have improved.
Looking ahead, “Data centres have also emerged as an attractive asset class for institutional investors in the last few years, with a large capital pool being committed and deployed in this sector,” Devi Shankar, Executive Director – Industrial, Logistics & Data Centres, ANAROCK Capital, explained.
