Interview with Alok Bajpai, Managing Director, NTT Global Data Centres -

Alok Bajpai, Managing Director, NTT Global Data Centres

The Indian data centre (DC) market is experiencing remarkable growth, driven by increasing digitalisation, the growing adoption of artificial intelligence (AI) and internet of things (IoT), and rising demand in Tier I cities. Several players, big and small, are looking to leverage the Indian data centre opportunity. While existing players have embarked on large-scale capacity additions, several new entrants are developing significant capacity. Industry leaders discuss key trends and emerging focus areas in the DC space…

How would you assess the growth of the Indian DC market in the past five years? What have been the key drivers?

The Indian DC market has witnessed robust growth driven by several key factors. Government initiatives like Digital India have spurred digital transformation, boosting demand for DC across sectors. The rapid adoption of cloud services by businesses of all sizes has led to a surge in demand. 5G roll-out is driving demand for high-bandwidth, low-latency infrastructure, fuelling the growth of AI, IoT and edge computing. The thriving start-up ecosystem requires scalable infrastructure for their operations and AI/GenAI innovations. The growth of e-commerce, fintech and other digital services is driving data generation and storage needs. AI and GenAI applications require high-performance computing, driving demand for DCs with specialised hardware and software. Government regulations encouraging data localisation are also driving demand for local DCs and edge computing.

How are customer demands changing with the emergence of AI and edge computing? How are DC operators addressing these changing requirements?

The rise of AI and edge computing is transforming the DC landscape. Our key customer demands include increased density and power, low latency, specialised cooling, scalability and flexibility, and sustainability. NTT GDC is effectively navigating the evolving demands of customers in the era of AI and edge computing…

Liquid cooling leadership: As a pioneer in liquid cooling in India, NTT GDC leverages this expertise to address the cooling needs of high-density AI workloads.
Edge DC expansion: We are strategically expanding our edge DC footprint to meet the growing demand for low-latency applications.
AI-optimised infrastructure: We are developing AI-ready DCs with features like high-density power, specialised networking and AI-optimised hardware.
Campus approach: NTT GDC builds DC campuses, enabling future expansion and scalability.
Sustainability focus: With over 100 MW of operational renewable energy (wind and solar) for the Mumbai and Bengaluru DCs, NTT GDC prioritises sustainability.

What are some of the biggest challenges that the industry faces today? Do you have a regulatory/policy wish list?

Securing land for DC development remains a significant hurdle. Navigating complex land acquisition processes and obtaining necessary approvals can be time-consuming and challenging. Clearer and more efficient land acquisition policies are needed to facilitate the development of DCs. This could involve simplifying regulatory approvals and providing clear guidelines for land use.

Further, ensuring a consistent and reliable power supply is critical for DC operations. Challenges include fluctuating grid stability, potential power outages and the need for UPS systems. Investment in renewable energy sources is crucial to ensure reliable and sustainable power supply for DCs.

What is the outlook for the Indian DC market over the next few years? What will be the key opportunities?

Recent research by Structure Research has indicated a five-year CAGR of 23 per cent for the global colocation market, with AI demand contributing significantly to this growth. This global trend is expected to be mirrored in the Indian market, which is characterised by rapid digitalisation, strong government support, and a thriving start-up ecosystem. In fact, a recent 451 Research report estimates CAGR for the Indian DC market at around 34 per cent from 2023 to 2029, indicating a robust and sustained growth trajectory.

NTT GDC, with its strengths in liquid cooling, edge computing and sustainability, is well positioned to capitalise on these opportunities and maintain a leadership position in the market.