Driving Digitalisation: Trends shaping the data centre space

The Indian data centre market is witnessing remarkable growth, driven largely by increasing digitalisation, deployment of artificial intelligence (AI) and internet of things (IoT), and investment inflows as well as a conducive regulatory environment. Going forward, the data centre segment, which is a key driver of India’s digitalisation goals, is expected to witness a major surge in demand. Industry leaders share their views on the growth trends in 2023, key policy initiatives and gaps, sustainability efforts, and future plans…

How has the data centre landscape evolved in India in 2023? What are your views on the growing demand for edge and hyperscale data centres?

Amit Agrawal

In 2023, India’s data centre industry underwent significant transformation, driven by digital initiatives. Key trends included a focus on scalability, resilience and sustainability. Hybrid cloud solutions gained popularity, optimising IT infrastructure for flexibility and cost efficiency. The rise of edge computing helped meet the demand for low-latency processing amid increased IoT adoption. Enhanced security measures addressed the rising cyberthreat landscape. The demand for edge and hyperscale data centres grew, with edge data centres crucial for real-time applications and hyperscale facilities catering to data-intensive workloads. At Web Werks – Iron Mountain Data Centers, we embraced these trends through strategic investments, robust security and sustainability measures, supporting clients in the dynamic digital landscape.

Seema Ambastha

The data centre landscape in India witnessed remarkable evolution in 2023. The increasing reliance on digital business strategies, digital content delivery, data localisation, IoT and AI fuelled the demand for both edge and hyperscale data centres. Edge facilities gained prominence for low-latency content, while hyperscale centres grew massively due to cloud demand. This shift underscores the need for versatile and scalable data centres to meet the diverse requirements of businesses in the digital era.

Sunil Gupta

The data centre industry is evolving significantly, and is poised for substantial growth, driven by increased cloud adoption, a push from the government for Digital India and the increasing prevalence of AI. We are witnessing an increasing interest in edge data centres, especially with the widespread implementation of IoT devices in large-scale industries such as manufacturing. These developments have significantly increased the power consumption of data centres, increasing the focus on adopting sustainable sources of electricity.

Vipin Jain

The data centre sector is witnessing significant growth, driven by increased demand for cloud services, digital transformation and technologies such as AI, IoT and 5G. India’s data centre capacity is projected to surge from 375 MW in June 2020 to 1,078 MW by 2025, fuelled by government initiatives such as Digital India and the categorisation of data centres as infrastructure assets. Factors such as edge computing, remote work and sustainability contribute to the industry’s expansion.

The data centre market is experiencing substantial growth, with hyperscalers and edge data centres constituting 79 per cent of the overall demand. This surge in demand reflects the increasing reliance on hyperscale facilities and edge infrastructure, driven by the rapid expansion of digi­tal services, cloud computing and emerging technologies.

Sumit Mukhija

A rapidly expanding base of digital-first companies and a digitally hungry and included population, together with ena­blers such as conducive government support and policies; robust digital infrastructure; digital assets such as UPI, Aadhaar and Open Network for Digital Commerce; and the widespread adoption of digital services across the spectrum, have enabled unprecedented digital growth in India. The momentum that has been seen over the past few years will continue to be a significant factor in shaping India’s growth in the foreseeable future.

While the growth in data centres will span all major cities in India, Mumbai, being a major commercial and financial hub, has been at the forefront with more than 50 per cent of the country’s current as well as planned capacities coming up there. Chennai, Pune, Hyderabad and the National Capital Region are also catching up quickly and are well placed to become formidable regions for both cloud and enterprise deployments. So, the growth is well diversified in terms of regions and cities.

With 28 facilities totalling over 300 MW of IT load across 10 cities, including projects under development, STT GDC India is well positioned to contribute to this transformative future, using our expertise to meet the rising demand for data services, drive digital transformation and advance the industry in India. In fact, the digitalisation of India is the biggest digital growth story in the world.

Cloud, which is the fundamental building block of digitalisation, is growing at more than 30 per cent annually. Data centres, which are the bedrock of cloud deployments at scale, dovetail this cloud growth at around 20 per cent annually. More than $25 billion of investments have been lined up for enhancing digital infrastructure over the next three to four years alone. Similar to the purchase power parity, even if you look at it purely from India’s digital parity as compared to other major economies, the potential growth is at least three to four times the current levels. The sector’s capacity is expected to see substantial growth, potentially exceeding 3 GW by 2030.

Prashant Pereira

The Indian data centre business has seen considerable changes over the past few years, both in the scale of campus sizes and the power density per rack. Given this expansion, it is clear that India is well positioned for expansion in the future. The demand for AI services has increased graphics processing unit-based workloads in India. Alternative cooling technologies such as rear door heat exchange and imm­er­sion cooling have emerged to address these workloads.

Hyperscale data centres continue to expand in key markets in India. Over-the-top service providers and Indian enterprises are also contracting large capacities. They are driving the data centre scale. Moreover, the edge data centre market is growing in Tier II and Tier III cities to address content-heavy and latency-sensitive applications.

Data centres are constantly evolving in response to technological breakthroughs and changing business needs. With technological breakthroughs such as IoT and AI, the emphasis is shifting to third-party data centres and cloud platforms to meet the structural requirements of these technologies. Organisations will be able to shift much of the cost of running a data centre by transitioning from on-premises data centres to the cloud, which provides access to computing, storage and networks as commodities.

At Sify, we constantly strive to bring innovative technologies to data centres. For instance, we integrate AI into our systems to automate tasks, optimise resource allocation and enhance security. AI-powered analytics provide valuable insights for predictive analysis and proactive decision-making. We also use edge computing, which brings data storage and processing closer to the source, reducing latency and improving efficiency.

Piyush Somani

In 2023, India’s data centre industry witnessed a staggering 25 per cent growth compared to the previous year. This leap represents a paradigm shift in our digital infrastructure. With over 50 new data centres coming up, we are seeing a massive surge in both edge and hyperscale facilities. This is because the demand for data processing and storage has skyrocketed – thanks, in part, to a 30 per cent increase in internet usage nationwide. Edge data centres have become vital, reducing latency for over 600 million internet users in India. Meanwhile, hyperscale data centres are not just growing; they are evolving, now housing more than 40 per cent of our national data storage capacity. This transformation is not just about scale; it is about India stepping up as a global digital leader.

What impact will the Digital Personal Data Protection Act, 2023, have on the data centre industry? In your opinion, what additional policy steps should be taken to promote growth in the industry?

Amit Agrawal

The Digital Personal Data Protection Act (DPDPA), 2023 is a pivotal development, emphasising the protection of personal data in the digital era. Its impact on the data centre industry includes the imposition of stringent compliance measures, urging enhanced security protocols and data protection mechanisms. The act may necessitate data localisation, influencing strategic re-evaluation. Organisations using data centres will face increased accountability for data protection. To foster industry growth amid evolving regulations, recommended policy steps involve sustainability incentives, standardisation for compliance, collaborative regulation development and investment incentives for infrastructure development. Web Werks – Iron Mountain Data Centers is committed to proactive adaptation, ensuring high standards of data security and compliance in this dynamic regulatory landscape.

Our commitment to sustainability guided our efforts in energy efficiency and environmental compliance.”
Amit Agrawal

Seema Ambastha

DPDPA 2023, suggested by the Srikrishna Committee, aims to protect the data of citizens by storing it locally. Data localisation would also help the government provide more seamless services to the people. The Reserve Bank of India has mandated certain regulated entities to store all financial data pertaining to Indian citizens within the Indian domain. The DPDPA will significantly impact the data centre industry by reinforcing data security and privacy. Compliance will be of paramount importance, necessitating robust measures for data protection. To foster industry growth, policies should focus on providing a conducive climate for scalable, sustainable and investor-friendly approaches to the data centre industry.

Sunil Gupta

DPDPA, 2023 has significantly eased the setting up and running of data centres in India. Our data localisation policies allowed for the establishment of a secure data centre ecosystem within the nation’s borders, and have given a significant fillip to the expansion of the sector. As a result, Yotta is expanding its current data centre parks in Navi Mumbai and Greater Noida, and we also recently launched our G1 data centre in GIFT City, Gandhinagar.

Vipin Jain

The DPDPA introduces user permission guidelines, restricts cross-border data transfer, and addresses data breaches. It establishes a framework for a data protection authority to ensure compliance, imposing penalties on companies violating regulations or neglecting reasonable data breach precautions. Notably, businesses are required to discard user data when it no longer serves its original purpose. This legislation represents a significant stride in emphasising the importance of safeguarding individuals’ data privacy and security. For companies specialising in data centres, it represents a pivotal move towards reinforcing responsible data management fundamentals, facilitating data localisation, promoting cross-border data transfer and prioritising security, thus fostering innovation and business growth while maintaining ethical relationships with users and regulatory bodies.

Sumit Mukhija

The DPDPA and other related guidelines are both relevant and much-required initiatives, in line with those being implemented by governments globally. The key issues that the DPDPA and related acts are addressing include the security, integrity and privacy of user data, and corresponding compliance and lawful usage.

Data localisation, which requires local storage of customer information and relevant data, is likely to increase the demand for data centres, cloud and storage services, and corresponding investments in the Indian market. Lawful and secure processing and compliance also play key roles in building a safe, secure and trusted environment for consumers, users, businesses and governments to continue leveraging the power of digitalisation, and that is what the DPDPA aims to fortify in the data centre industry. Establishing clear guidelines for cross-border data flows while upholding global data protection standards will further contribute to the industry’s growth and resilience.

All this, I believe, is still evolving, and the roles and responsibilities of stakeholders will need to be defined more clearly. Specifically, for cloud, managed services and data centre infrastructure providers, further clarity may be required on their respective roles in the digital ecosystem and responsibilities in terms of liabilities and breach notifications. All of this will be crucial for a balanced and sustainable digital ecosystem.

Establishing clear guidelines for cross-border data flow while upholding global data protection standards will contribute to the industry’s growth and resilience.”
Sumit Mukhija

Prashant Pereira

The Digital Personal Data Protection Act, 2023, establishes a comprehensive framework for data protection, putting stringent requirements on data fiduciaries and data processors. Data centres that handle personal data, whether for Indian citizens or international employees, clients or consumers, must adhere to the new requirements. Changes to data management policies, IT infrastructure and internal processes may be required to ensure data privacy and security. The bill mandates stricter data protection measures, ensuring enhanced security and privacy; aligns with international data protection and compliance standards; and is expected to increase the demand for data centre infrastructure and related services, potentially benefiting the local economy and technology providers as a whole. With e-commerce and the digital economy on the upswing, personal, organisational and transactional data will be targeted in online frauds. The bill seeks to build stronger controls to create a secure wall around user data.

In terms of additional policies, stringent measures should be put in place to avoid increased bureaucracy and complexity around data transfers. The Digital Personal Data Protection Act, 2023, also introduces new concepts, and unclear interpretations could lead to legal uncertainties.

Piyush Somani

DPDPA, 2023 has reshaped how we handle the 2.5 quintillion bytes of data generated daily. Its impact is monumental. Since the act’s introduction, we have increased our investment in data security by 35 per cent, ensuring robust protection for personal data. India needs policies that encourage innovation in data security. How about tax incentives for cybersecurity R&D? Or a national data security talent development programme, considering that we have a shortfall of over 100,000 skilled cybersecurity professionals? These steps could make India not just a data centre hub, but a global standard-bearer for data security.

The data centre industry is shifting its focus towards sustainability and green data centres. What have been your initiatives towards this end, and how do you plan to scale them up in the future?

Amit Agrawal

Web Werks prioritises environmental responsibility in the data centre industry with initiatives focusing on sustainability. We integrate renewable energy, including solar and wind power, to reduce reliance on traditional grids and minimise our carbon footprint. Energy-efficient technologies optimise operations, featuring advanced cooling systems, efficient servers and innovative design. The commitment extends to waste reduction, responsible e-waste disposal and adherence to green building standards. Future plans involve increased reliance on renewable energy, a commitment to carbon neutrality through offset programmes, innovations in cooling technologies, stakeholder education and a dedication to continuous improvement. Web Werks – Iron Mountain Data Centers views sustainability as an ongoing journey towards a more resilient and eco-friendly future.

Seema Ambastha

Embracing sustainability, our data centre has been awarded the prestigious Indian Green Building Council Platinum rating, reflecting our commitment to environmentally responsible practices. The implementation of a net-zero water concept, whereby water usage is offset by conservation measures, aligns with our goal of minimising our ecological footprint. Over 70 per cent of our power consumption is sourced from renewable sources, with a robust on-site solar power generation capacity of 243 kW and a commitment to planting and maintaining over 500 trees on site, contributing to a 25 per cent green cover.

Additionally, we have implemented rainwater harvesting systems and employed on-site organic waste converters, emphasising our dedication to holistic environmental stewardship. As we scale up these initiatives in the future, we will remain at the forefront of sustainability by continually investing in cutting-edge technologies, exploring additional renewable sources and collaborating with like-minded partners. Our ambition is to not only meet, but exceed industry standards, setting new benchmarks for environmental responsibility in the data centre sector.

“The Digital Personal Data Protection Act, 2023 will significantly impact the data centre industry by reinforcing data security and privacy.”
Seema Ambastha

Sunil Gupta

Yotta is building facilities designed to operate entirely on renewable energy sources, whether generated off-site, such as through solar and wind power; or through on-site hydrogen-based cogeneration and future fuel cell technologies.

Vipin Jain

Data centre providers in India are committed to incorporating environmentally friendly initiatives and policies to ensure sustainable operations. Prioritising the integration of renewable energy sources such as solar panels, wind energy and renewable energy credits have become essential for powering data centres.

CtrlS Datacenters has set a target of achieving carbon neutrality by 2030 and is actively investing in 153 MWp of solar projects across three markets. These projects are anticipated to produce an annual energy output of 250,000 MWh. Furthermore, the company has outlined plans to expand its environmental efforts by investing in an additional 300 MWp worth of projects by 2025.

Alongside these initiatives, CtrlS Dat­a­centers is actively involved in enhancing water conservation measures, implementing advanced water recycling technologies with the goal of achieving 100 per cent usage of recycled water across all its data centres. The company’s commitment to a paperless office app­roach has saved 500,000 trees, and its carbon footprint eli­mination process has eliminated 200,000 mt of CO2 emissions.

Sumit Mukhija

As a company, both at the group and the India level, sustainability has been at the heart of everything that we do. Our green mission is built on very strong fundamentals – those of leadership and transparency. We have dedicated teams that look after the green and corporate social responsibility and compliance aspects. All of our purpose-built data centre facilities are green buildings. Our teams work relentlessly and use innovative and efficient technologies as well as operational best practices to im­prove power utilisation efficiencies across all our existing facilities. Sust­ai­nability for us is, therefore, a responsibility, a corporate direction, and a stated key result area in the company performance scorecard.

More than one-third of the power that we consume in our facilities in India currently comes from renewable energy sources, mostly solar and wind. This is set to ramp up to over 50 per cent within the next two to three years. Ideally, and as part of our endeavour to go carbon neutral, by 2030, we would like to take this all the way to 100 per cent. For this, we are working closely with power generating and distribution companies as well as the government through industry representations on some necessary policy changes. The renewable energy we use helps us avoid more than 176,000 tonnes of CO2 annually. Moreover, power utilisation efficiency improvements achieved using operational best practices have resulted in another 26,000 tonnes of CO2 avoidance. We monitor water utilisation very closely as well, and use rainwater harvesting while deploying RO plants to reuse blowdown water for cooling. Our average water usage effectiveness across sites is among the lowest in the region.

Prashant Pereira

Given the rapid expansion of enterprise data centres in India, the adoption of green measures in our data centres has become essential. Sify has made, and continues to make, substantial investments in green energy for its data centres. Some of the key initiatives taken by Sify for the implementation of green data centres are:

• The Kotak Data Centre Fund spent Rs 6 billion to expand Sify’s data centre capacity in India and invest in renewable energy.
• The company has signed power purchase agreements for the purchase of 231 MW of renewable energy to power its data centres.
• Sify has achieved a 50 per cent reduction in its carbon footprint as of 2023.
• Sify has achieved a 20-40 per cent reduction in its overall energy costs.
• Currently, the focus is on achieving a 29 per cent greenhouse gas emission reduction by financial year 2025, ensuring adherence to the ASHRAE guidelines.
• Another prime focus area is the reduction of power usage effectiveness (PUE) and water usage effectiveness. Sify is committed to reducing its carbon footprint.
• The choice of data centre equipment is based on high efficiency even at low utilisation levels.
• An AI-based building management system is being used for monitoring and controlling water flow in the chiller system for better PUE.

To summarise, we ensure sustainability by utilising renewable energy sources such as solar and wind power. We also use intelligent power management technologies for tracking and managing energy consumption. In addition, we employ eco-friendly products and processes to reduce environmental effects during the design phase.

Piyush Somani

Imagine reducing carbon emissions by the equivalent of planting 10 million trees. That is what our green data centre initiatives aim to achieve by 2025. Last year, we reduced our carbon footprint by 15 per cent by transitioning to renewable energy sources. But there is more to be done. Data centres can consume as much power as a small city. That is why we are investing in solar energy, targeting a 40 per cent renewable energy mix by 2024. We have also improved our PUE from 1.7 to 1.5, and we are continuing. Our plan is to reach a PUE of 1.2, setting a new industry standard for energy efficiency. Sustainability is not just a buzzword for us; it is our responsibility to the planet.

“Hyperscale data centres are not just growing; they are evolving, now housing more than 40 per cent of our national data storage capacity.”
Piyush Somani

What were the operational or regulatory challenges faced by data centre operators during 2023?

Amit Agrawal

In 2023, the data centre industry faced operational challenges including supply chain disruptions, capacity planning dilemmas, talent shortages and the need for energy efficiency. Global events and logistical issues impacted hardware availability, while rapid demand growth required agile capacity solutions. Talent shortages in cybersecurity and network management were addressed through recruitment efforts. Rising energy costs and sustainability concerns prompted investments in efficient technologies. Regulatory challenges involved data privacy compliance, data localisation requirements, enhanced cybersecurity standards and environmental regulations. Web Werks Data Centers addressed these issues proactively with agile infrastructure, talent development and compliance monitoring. Our commitment to sustainability guided our efforts in energy efficiency and environmental compliance, ensuring secure, efficient and compliant solutions.

Seema Ambastha

Operational challenges in 2023 included the need for agility in adapting to evolving technologies and compliance standards. Regulatory challenges centred around navigating complex regulatory approvals. To address these, industry collaboration, continuous training and proactive engagement with regulators are vital, ensuring that we create a more streamlined, predictable and transparent approval framework for this digital infrastructure business.

Sunil Gupta

The operational and regulatory challenges faced by data centres include the prolonged land allocation process, multilayered power feasibility approvals and the regulatory complexities of getting the data centre up and running. However, with the increased realisation of the importance of data centres, we are seeing a positive change in the industry. The government has introduced progressive policies to mitigate these hurdles, thereby catalysing growth in the data centre domain. The increase in investments in the data centre market in India is a testament to a positive regulatory push.

“The data centre industry is evolving significantly, and is poised for substantial growth, driven by increased cloud adoption, a push from the government for Digital India and the increasing prevalence of AI.”
Sunil Gupta

Vipin Jain

The exponential growth in data consumption, driven by emerging technologies such as 5G, AI and IoT, poses a significant challenge in terms of data handling and storage. As data volumes soar, data centres must grapple with the need for scalable, efficient and sustainable solutions to meet escalating demands.

Secondly, the rising concerns around cybersecurity and data protection present a critical challenge for data centres. With the increasing sophistication of cyber­threats, safeguarding sensitive information has become paramount. As environmental consciousness grows, there is an increasing focus on reducing the carbon footprint of data centres. The energy-intensive nature of data processing demands innovative solutions such as renewable energy integration, energy-efficient technologies and sustainable practices.

Sumit Mukhija

Like any other industry, data centres have their own set of challenges and nuances, including regulatory ones. Both the central and state governments have produced draft data centre policies and incentives, and some progressive states such as Uttar Pradesh, Tamil Nadu, Karnataka and Maharashtra have rolled out such policies already. Most states have single-window clearance mechanisms for approvals.

In addition, the industry has been accorded infrastructure status and included in the harmonised list of infrastructure subsectors by the government. These are commendable steps.

The time taken for actual approvals, especially environment clearances, is still a bit on the higher side. Some amount of work still needs to be done in getting the underlying departments to understand, endorse and internalise these policies and single-window clearance mechanisms to enable the real benefits of these measures on the ground, and cut down the duration of the project approval cycle to less than three months.

Prashant Pereira

Despite the tremendous growth of data centres in the country, the industry faces some challenges. Various clearances are required from government and industrial bodies. These include clearances from industrial development corporations, municipal bodies and electricity boards; and fuel storage permits. There is no single-window approval system. The supply chain for mechanical, electrical and plumbing equipment for data centres is also a challenge, with some kinds of equipment requiring over 12 months of lead time. Bulk supply is also a challenge.  The unavailability of suitable land parcels and the high cost of real estate are further challenges in major cities such as Mumbai, Delhi and Bengaluru, making it expensive to build and operate data centres in these areas.

As they have been given the status of “infrastructure”, data centres would greatly benefit from a common building code. Power is a critical unit in data centres, and operators invest substantial capital towards building an ecosystem of qualified green power supply. Data centre operators require specialised skills in areas such as networking, security and server management. However, there are not enough trained professionals to meet the demand. That said, we have recently been seeing several new courses in the field.

Piyush Somani

The year 2023 threw many curveballs, from talent shortages to stricter regulations. We tackled the talent crunch with upskilling and strategic partnerships, navigated supply chain disruptions with diversification and inventory management, and faced power constraints head-on by exploring alternatives and embracing efficiency. The new data privacy laws made the industry think about customers’ data, seeing this as a chance to boost security and trust. Environmental scrutiny fuelled our green initiatives, such as renewables and water conservation. Land acquisition hurdles sparked creativity, leading us to consider modular and vertical solutions. Challenges met and lessons learned, ESDS has emerged stronger, ready to build a resilient, sustainable and compliant data centre future.

What will be your primary focus areas and strategies for 2024?

Amit Agrawal

In 2024, our strategic priorities at Web Werks include expanding our sustainability initiatives with renewable energy integration and a commitment to carbon neutrality. Advanced security measures will involve increased investments in cybersecurity technologies for enhanced data protection. We plan to strategically grow edge data centres, optimising infrastructure for improved performance and scalability. Staying compliant with evolving regulations remains a priority, in addition to conducting talent development programmes and retaining skilled professionals. A customer-centric approach should include tailored solutions and strategic partnerships. Embracing innovation, such as AI and 5G, is central to our strategy, along with exploring global expansion opportunities to meet growing data centre service demands.

Seema Ambastha

In 2024, our focus on innovation, sustainability and client-centric solutions will persist. We will invest in sustainability, enhance operational efficiency and expand our green initiatives. Our aim is to create a differentiated product that meets today’s growing data centre demands such as liquid immersion cooling, very high density to support AI super cloud infrastructure and a dynamic scalable network for hosting AI. Collaborating with industry partners and adhering to evolving regulations remain our strategic pillars for sustainable growth. Additio­nally, we are excited to announce our exp­ansion plans for the next three years. We are aiming to build 100-120 MW of capacity in strategic locations – Mumbai, Chennai and Bengaluru.

Sunil Gupta

Being our fifth year of operation, 2024 is a milestone year for us. Shakti Cloud, our AI-high-performance computing supercomputer, and Yntraa, our indigenous hyperscale cloud platform, are set to become operational across the country, providing Indian AI start-ups and enterprises the much-needed infrastructure support to scale quickly. We are also looking at expanding our portfolio with new edge locations and data centres this year. Yotta has always been committed to meeting the evolving demands of a dynamic and interconnected digital landscape at both the regional and global levels, and our recent developments are giant strides in this direction.

Vipin Jain

CtrlS Datacenters, with facilities spread across Mumbai, Bengaluru, Hyderabad, Noida, Chennai, Lucknow and Patna, is strategically positioned for significant growth.

CtrlS has outlined a clear strategy for expanding its hyperscale and edge data centres in India. The ambitious plan involves scaling power capacity from the existing 234 MW to over 1,000 MW and establishing a solar park near Mumbai to power data centre facilities, aligning with its commitment to eliminate its carbon footprint.

The company is also proactively building data centre infrastructure capable of supporting emerging technologies such as AI and machine learning (ML) workloads, while implementing liquid and immersion cooling. CtrlS is committed to staying at the forefront of the rapidly advancing data centre industry, driven by technology and sustainability.

“India’s data centre capacity is projected to surge from 375 MW in June 2020 to 1,078 MW by 2025, fuelled by government initiatives such as Digital India and the categorisation of data centres as infrastructure assets.”
Vipin Jain

Sumit Mukhija

STT GDC India, with its impeccable track record of designing, building and operating mission-critical data centres for over two decades in India, and almost 30 per cent market share by revenue, is well positioned to capitalise on the digital growth momentum in India. Our current portfolio includes over 300 MW of critical IT load across 28 facilities, including a few under development, in 10 Indian cities including Mumbai, Pune, Delhi NCR and Chennai. In fact, our campuses in Chennai, Pune, Mumbai and Noida are amongst the largest in the country, and each can scale to over 100 MW of IT load capacity. Our new hyperscale data centre campus of over 100 MW in Mumbai and an over 40 MW expansion in Pune are expected to go into production over the coming months.

As part of our quest to expand our capacities across India, we have lined up significant investments over the next three to five years and expect to add another 200-250 MW of capacity during this period. The years 2024-25 will be extremely critical in this journey. More importantly, we will do this responsibly, ethically and sustainably, all of which are continuing priorities for us.

Another key area of focus for us is to enable AI deployments at scale. All of our purpose-built facilities are AI-ready, and can support high power densities of 20-30 kW per rack. For even higher densities, we have the ability to deploy liquid-cooled set-ups in our facilities, according to customer requirements.

Prashant Pereira

A primary area of focus is the timely delivery of data centre capacities to address the ever-increasing demand. A focus on supply chain management and effective programme management is key for us. AI and ML play significant roles in optimising data centre operations. The implementation of these tools enables predictive analytics, automation and enhanced resource management. This is a major focus initiative for Sify.

Integrating AI and ML into data centre operations requires robust data collection, powerful computational capabilities and skilled personnel to develop, train and deploy these models effectively. However, once implemented, these technologies significantly enhance the efficiency, reliability and security of data centre operations.

Expanding in Tier II and Tier III cities to address the edge data centre demand is also a focus area for the next two to three years.

As they have been given the status of ‘infrastructure’, data centres would greatly benefit from a common building code.”
Prashant Pereira

Piyush Somani

In 2024, we see ourselves at the forefront of innovation, with a keen eye on sustainability. Our goal is to expand our data processing capacity by 50 per cent while reducing our energy consumption by 20 per cent. It sounds ambitious, but it is attainable. We are exploring AI and ML to optimise data centre operations, potentially reducing downtime by up to 30 per cent.

Partnerships are key and we are looking to collaborate with tech giants to bring cutting-edge solutions to India. And let us not forget about sustainability – our commitment to green energy is unwavering. In the end, it is about striking the right balance between growth, innovation and environmental responsibility. That is our vision for 2024.