Sunday, July 14, 2024

India Data Center Construction Market: Opportunities and Challenges

India’s data center construction market is expected to reach a value of $3.46 billion by 2028, growing at a CAGR of 14.76%. The market is being driven by the need for data-center development as a major criterion for offering internet services. In recent years, data centers have been attracting significant investments for developing hyperscale data center campuses, and more data centers are planned to be established in 2022. With the launch of 5G in India, the demand for edge centers across the country is expected to increase to process data faster. Renewable energy adoption is increasing rapidly in India, with support from government initiatives and data center service operators taking significant measures to purchase and produce renewable energy to power their data centers.

In 2022, CtrlS built a new facility in Hyderabad with a power capacity of 18 MW, and aimed to establish 500 edge data centers in Tier 2 and Tier 3 cities across the country with a 500-acre solar plant to power its operation with renewable energy. In terms of power infrastructure, the generators segment was the largest contributor to the market revenue through the adoption of DRUPS systems.

Indian data centers use both water-based and air-based cooling techniques. Facilities that depend on free-cooling techniques, such as free-cooling chillers and evaporative coolers, are expected to grow among facilities in the India data center construction market.

Maharashtra, Tamil Nadu, Telangana, and Uttar Pradesh dominate the India data center construction market regarding data center investment revenue. There are approximately 39 data center facilities in 14 states of India that are certified by the Uptime Institute, of which 31 are Tier III facilities, and eight are Tier IV facilities.

data center construction market1

Edge Data Center Investments Fueled by 5G Deployment, use of Renewable Energy in Data Centers, Growth of Rack Power Density, and Availability of Liquid Cooling to Support AI & ML Workloads are some of the market opportunities and trends. Increased Investments by Colocation Providers, Government Investments in Digital Economy & Data Centers, Increased Data Center Investments Due to Cloud Adoption, and Data Center Investments Driven by Big Data & IoT Implementation are some of the market growth enablers.

However, the market faces challenges such as Power Reliability/Network Outage Challenges, Data Center Security Challenges, and Location Constraints. Many operators are investing in new facilities and expanding existing facilities as there is a surge in customer demand, making the region’s market highly competitive. New entrants are investing in constructing core and shell properties across the country. These new facilities are expected to be fully commissioned within two to three years of the initial build-out.

References:

  • ResearchAndMarkets. (2021). India Data Center Construction Market-Growth, Trends, COVID-19 Impact, and Forecasts (2021-2026). Retrieved 29 March 2023, from https://www.researchandmarkets.com/reports/5241003/india-datacenter-construction-market-growth
  • Schneider Electric. (2022). Schneider Electric’s Cooling Solutions to Help India’s Data Center Market Meet Surge in Demand. Retrieved 29 March 2023, from https://www.schneider-electric.com/en/aboutus/press/news/2022/04/22/schneider-electrics-cooling-solutions-tohelp-indias-data-center-market-meet-surge-in-demand/
  • DatacenterDynamics. (2022). India poised for hyperscale data center boom. Retrieved 29 March 2023, from https://www.datacenterdynamics.com/en/news/india-poisedhyperscale-data-center-boom/
  • Data Center Frontier. (2022). Indian Data Center Market

Authored by;

Jai kumar Doble, Chartered Engineer, MBA (UK), MTech (Structure), BE Civil, IGBC AP

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