Vipin Jain, President, DC Operations, CtrlS Datacenters
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 demonstrated robust and consistent growth over the past five years, fuelled by a confluence of factors. India’s Digital India initiative has been a primary catalyst, driving digital transformation and creating substantial demand for data storage, processing and cloud services. This demand is further amplified by the rise of data-intensive technologies such as AI, IoT and 5G, coupled with broader digital adoption across all sectors, including a notable expansion into Tier II and Tier III cities. The increasing need for advanced computing infrastructure, particularly high-performance GPU servers and AI-optimised cloud solutions, is another key driver, further strengthened by the government’s Rs 100 billion AI initiative. This surge in data and processing needs, driven primarily by AI, accelerates the construction of new, more efficient DCs capable of managing increased demands for energy, processing power and cooling, leading to both capacity expansion and the evolution of capabilities within the Indian DC market.
How are customer demands changing with the emergence of AI and edge computing? How are DC operators addressing these changing requirements?
We are seeing a surge in AI-driven workloads driving the need for data centres that can handle complex computations, deliver extremely low latency, and provide high-capacity storage for real-time data analytics. Simultaneously, edge computing is becoming critical, particularly for industries such as manufacturing, automotive and healthcare, where devices at the network edge generate massive amounts of data requiring immediate processing.
DC operators are adapting to these changes by investing heavily in high-performance infrastructure. At CtrlS, we are expanding our edge DC network and investing in high-performance computing, including GPUs, to ensure customers get the speed and performance they need, even for mission-critical applications. Recognising the critical importance of data security for AI projects, we have implemented stringent compliance and security measures to protect sensitive information.
What has been the progress on the sustainability front?
We are deeply committed to sustainability and are taking concrete steps to minimise our environmental footprint. A key initiative is our investment in a 135 MWp captive solar power project in Maharashtra. Our Noida DC already runs on 60 per cent solar power, significantly reducing its carbon footprint. We are also exploring advanced cooling technologies like liquid cooling, which offers the potential to improve energy efficiency by up to 40 per cent.
What are some of the biggest challenges that the industry faces today? Do you have a regulatory/policy wish list?
The Indian DC industry is on a strong growth trajectory, but several challenges could limit its ability to fully realise emerging opportunities. The recent US law capping GPU chip exports at 50,000 units annually may pose challenges to the supply of critical high-performance computational resources. Resolving this bottleneck through diplomatic efforts is crucial to avoid disruptions across industries dependent on AI and cloud technologies.
Increased operational expenses, stemming from high electricity rates and extra wheeling and banking fees on renewable energy further burden the sector. Waiving wheeling and banking charges on renewable energy for 10 years would accelerate green power adoption. Policies encouraging hydro storage projects for captive energy use could enhance the sector’s sustainability. There is also a growing need to start evaluating other energy sources such as nuclear power to meet long-term DC industry requirements.
Another pressing concern is the lack of skilled professionals, as AI, 5G and IoT continue to drive demand for specialised roles. By 2027, 1.25 million AI experts will be required, which highlights the urgency of targeted skilling programmes.
What is the outlook for the Indian DC market over the next few years? What will be the key opportunities?
The Indian DC market is evolving rapidly, driven by key trends like accelerating cloud adoption, which is fuelling demand for hyperscale facilities. According to CBRE, the country’s DC capacity is projected to reach approximately 2,070 MW by the end of 2025. The total DC stock is expected to increase from about 19 million square feet to 31 million square feet by 2025, indicating significant infrastructure expansion.
The rise of edge computing is also significant, with deployments increasing to support latency-sensitive IoT and 5G applications. Sustainability is now a core focus area, pushing operators to invest in renewable energy, efficient cooling technologies and modular designs for faster deployment. We are also seeing increased integration of AI and machine
learning for optimised performance and enhanced security, along with a shift towards software-defined infrastructure for greater flexibility.
We are optimistic about the market’s growth trajectory. However, navigating challenges related to infrastructure development, power reliability and skills gap will be essential for realising the market’s full potential.
