Rohan Sheth, Head, Colocation, DC Build and Global Expansion, Yotta Infrastructure Solutions
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 market has witnessed exponential growth. According to ICRA, India’s DC operational capacity is expected to more than double to 2,000-2,100 MW by FY2027 from 950 MW in FY2024, driven by investments exceeding Rs 500 billion. This growth is being supported by rapid digital expansion and data localisation mandates. Technological advancements such as AI have been key growth drivers, providing companies with a competitive advantage. The nationwide deployment of 5G has emerged as another significant driver, enabling enhanced connectivity and addressing the rising need for low-latency data storage solutions.
How are customer demands changing with the emergence of AI and edge computing? How are DC operators addressing these changing requirements?
The advent of AI and edge computing is redefining customer expectations in DC operations. Customers are now seeking infrastructure capable of handling AI workloads, requiring high-performance computing and GPU-accelerated environments. The emphasis on edge computing has heightened the need for ultra-low latency, enabling real-time application processing. Additionally, data sovereignty and robust security measures are becoming increasingly critical.
DC operators are upgrading their infrastructure to be AI-ready. This involves deploying state-of-the-art GPU clusters, implementing advanced cooling solutions such as rear door heat exchangers and direct liquid-to-chip cooling to manage the demands of AI workloads, and integrating high speed data transfer capabilities with low-latency network connections. These innovations ensure that the infrastructure remains scalable, efficient and well equipped to meet the growing demands of AI.
What has been the progress on the sustainability front?
DCs, by nature, consume significant amounts of energy as they run and support an extensive IT infrastructure. India’s ambitious net zero emissions target by 2070 aligns with our commitment to sustainability and its positive global impact.
Most of our energy is sourced from green energy sources. We have designed our DCs to optimise power consumption. At our Yotta NM1 DC in Navi Mumbai, we are operating with 80 per cent green energy on current load. Yotta D1 in NCR-Delhi is 100 per cent powered by green energy (on current load), which also holds the IGBC Green Data Centre Rating System Platinum Certification.
In DCs, PUE is a key metric for energy efficiency. Our efforts have enabled us to achieve a PUE of 1.4, one of the lowest in the industry.
What is the outlook for the Indian DC market over the next few years? What will be the key opportunities?
India’s DC market is on a growth trajectory, driven by AI developments and the nationwide roll-out of 5G technology. In 2024, AI and ML drove a paradigm shift in DC design, site selection and investment strategies. According to JLL, the coming decade will witness consumers and businesses generating twice the amount of data created over the past 10 years. To meet this demand, total storage capacity in DCs and endpoint devices is projected to grow from 10.1 zettabyte (ZB) in 2023 to 21.0 ZB in 2027, reflecting a CAGR of 18.5 per cent.
GenAI is also expected to significantly disrupt the industry, influencing not only the demand but also the location and design of DCs. Bloomberg Intelligence estimates the GenAI market to grow to $1.3 trillion over the next 10 years, up from just $40 billion in 2022. To capitalise on this opportunity, DC operators must recognise that AI-specialised facilities differ from traditional ones. As the adoption of cutting-edge technologies accelerates, enterprise and co-location DCs must adapt their infrastructure to meet the increased power requirements of sophisticated computing workloads.
