The rapid growth in over-the-top (OTT) platforms, social media, gaming and artificial intelligence (AI) has fuelled an explosion in demand for India’s data centre industry. The sector holds tremendous promise, bolstered by factors such as some of the world’s lowest data charges, state-offered tax incentives, Goods and Services Tax (GST) refunds, subsidised power and development costs 60 per cent lower than in more mature markets.
A transformative trend reshaping the data centre landscape is the rise of edge data centres (EDCs). These compact, decentralised facilities are strategically positioned close to end-users, forming part of a distributed edge computing framework built to handle data processing at unprecedented speeds. EDCs enable real-time data processing, offer enhanced networking and security, support the scalability of edge cloud services, deliver tailored enterprise solutions and seamlessly integrate AI-driven functionalities.
The potential applications for EDCs are vast and dynamic, fuelling advancements across a range of industries. From empowering OTT platforms and cloud gaming to optimising intelligent traffic systems, smart parking, autonomous vehicles, remote walkthroughs, and immersive maintenance, repair and operations training, EDCs are transforming how industries operate. These capabilities make EDCs a powerful force, setting new standards for speed, efficiency and innovation in India’s data centre revolution.
RailTel and TEECL collaboration
RailTel Corporation of India Limited and Techno Electric & Engineering Company Limited (TEECL) have entered into a strategic partnership aimed at establishing and delivering data centre services throughout India. As part of this collaboration, the companies have agreed on a framework to develop these brownfield and greenfield projects under a design, build, finance, operate and transfer model. Under this model, TEECL will be responsible for the complete setup and operationalisation of each EDC. Following a 20-year consignment period, the ownership of the data centres will be transfered to RailTel, with an option to extend this operational period by an additional five years, ensuring a long-term, scalable solution for the country’s data needs.
The strategic plan outlines the phased development of EDCs in 102 cities across India over the next five years, with a targeted roll-out of 20 data centres annually. This approach allows for systematic deployment, with the first set of 20 EDCs expected to be commissioned by December 2025. These initial data centres will be strategically placed in state capitals, offering a foundational network of data processing and distribution hubs across India. Each location is chosen to maximise coverage and ensure that key regions gain early access to these cutting-edge data solutions.
In this partnership, responsibilities have been carefully structured to streamline the establishment of each EDC. For land acquisition, RailTel will collaborate with TEECL to secure prime city plots in high-demand locations, optimising accessibility and connectivity for the EDCs. This includes coveted areas such as Mahalaxmi in South Bombay, Sector 44 in Gurugram and Hazratganj in Lucknow. To ensure robust connectivity, RailTel will leverage its extensive 70,000 km optic fibre network, which runs parallel to the railway tracks and covers the entire country. Each EDC will be linked to this network, with exclusive access to connection via dark fibre. Additionally, all EDCs will be interconnected with data centres in Chennai and Kolkata, enhancing data transfer capabilities and network resilience.
For power, TEECL will secure the necessary load through Indian Railways or state discoms, ensuring an uninterrupted supply to maintain continuous EDC operations. Notably, 60 per cent of these EDCs will, for the first time in the industry, operate on renewable energy sourced at competitive rates of Rs 7.5-Rs 9 per unit, compared to the typical Rs 9-Rs 12 per unit offered by discoms at 11/33 kV.
Further, with plans to connect all these data centres as per future requirements, the project reflects a significant step forward in strengthening India’s digital backbone, supporting the rising demands for data processing, connectivity and storage across multiple industries and communities.
Future plans
Looking forward, the expansion of EDCs is set to extend beyond state capitals, with a focus on establishing these centres in additional cities within each state to ensure even broader coverage. Thanks to their modular design, EDCs can be efficiently scaled up in response to rising demand, providing a flexible and future-proof solution that aligns with India’s evolving digital infrastructure needs. As connectivity and storage demands increase across industries, this adaptable model will play a pivotal role in supporting the nation’s growing data landscape.
Based on a presentation by Anand Singh Chandel, General Manager (Value Added Business), RailTel Corporation of India
