How is the market for Data Center shaping up in India?
Artificial intelligence, Machine Learning, and the Internet of Things are accelerating the growth of storage and processing of data. Faster adoption of cloud, mobility-based enterprise solutions, new digital channels, government policies, and regulations, are fueling the growth of data centers in India. The Indian economy has been adapting to digital platforms, and two initiatives – data localization and Digital India – have led to a quantum leap in requirement of data centres. The Covid-19 pandemic has given a boost to digital platforms, and as a result, we are seeing high demand for data centres. Now, the segmentation phase is happening, with demand for high-end data centres, given global best practices becoming the accepted norm in India.
We are witnessing Data Center clusters in Tier I cities and state capitals; it is still to gather pace, say in Tier II and Tier III cities. Your comments
Data Center clusters come up in locations that are conducive to growth. Given the advantage of ‘economics of scale’ as also ‘first mover advantage’, it is not unexpected that IT and ITeS hubs and data cable landing points like Bengaluru, Hyderabad, Pune, and Mumbai, among other growth centres, are witnessing higher quantum of demand as compared to Tier 2 and 3 cities, and in turn, more Data Center clusters are found in such locations. Another reason is that Tier 1 cities and state capitals enjoy the advantage of pre-existing setup, which makes setting up clusters easier than in other locations. Tier 2 and 3 cities are gradually picking up in terms of Data Centers, and this demand should see data Center clusters in such locations in the near future.
What are the tweaks needed in government policies and regulations for a shift towards Tier II and Tier III cities?
‘Ease Of Doing Business’ needs to be implemented in terms of moves that will promote Tier 2 and 3 cities as new hubs for Data Centers. Policies by the Indian Government have already set the pace for data centers to grow; be they Digital India or Data Localization. Now, the need is for policy tweaks which will further encourage and speed up growth so that high volumes lead in Tier 1 locations to an overflow to Tier 2 and 3 cities. Policy tweaks that would encourage the setting up of Data Centers in Tier 2 and 3 cities will make a difference, so incentives for setting up Data Centers in Tier 2 and 3 cities as also benefits including the taxation aspect will make a difference.
What are the challenges facing Data Center providers in India?
Sustainable and eco-friendly are the new challenges; even as India witnesses organic growth amidst the Covid-19 pandemic which enhances the importance of Data Centers. Positive announcements by Officials/ Ministers as also the ambitious legislative support makes for a good beginning; but a closer look of India’s regulatory and internet infrastructure shows that India requires calibrated policy measures to ensure high-growth levels, which will ensure we become a regional data hub.
Please take us through a few unique features of your commissioned Data Centers?
Primarily, five aspects which I would like to mention: Scalability and Quality; Unmatched Cost Savings; Hyper Density Green Power; Excellent Telecom Connectivity and Robust support eco-systems.
With the focus increasingly becoming environment centric with ‘Sustainability’ as the buzz word, how are you assimilating and accommodating Sustainability in your Data Centers?
At Yotta, we are working on power resources that are smart, clean, and more cost-effective. In the present scenario, the need is to start focusing on renewable, green, and clean energy. It’s understandable that the entire operations of any data centre cannot depend only on such energy resources; technology to store energy from such ‘Green’ sources is developing and will take some time before it enters the market commercially.
What are your growth plans for your Data Center vertical and Data Centers in the pipeline?
The Hiranandani Group has forayed into the data centre space with its subsidiary Yotta Infrastructure Solutions; a managed data centre service provider that designs, builds, and operates large-scale data parks in India. While one data centre in Navi Mumbai is operational, the group will be investing around Rs 15,000 crore over the years in Navi Mumbai, Delhi, and Chennai. Artificial Intelligence, Machine Learning, and the Internet of Things are accelerating the growth of storage and processing of data. Yotta Infrastructure Solutions plans to cash in on India’s digital revolution and has plans to set up data parks in other cities of the country.
