Edge data centres in smaller cities: A golden opportunity for India’s digital growth

New Delhi, March 31 (IANS) With the global data centre industry evolving significantly, two notable trends are emerging in the Indian market – an increasing demand for colocation data centres and the rise of newer edge data centres. As data consumption grows in smaller cities, the demand for edge data centres is set to explode, presenting a lucrative opportunity.

Jaganathan Chelliah, Senior Director-Marketing, India, Middle East and TIA, Western Digital, stated that these trends highlight the unique demand dynamics within the region. India currently holds the 13th position globally for the highest number of operational data centres, with 138 in operation and an additional 45 new facilities expected by the end of 2025.

Due to a strong government push, the data centre opportunity is expanding. Capacity expansion is anticipated to surpass 1,300 MW by the end of 2024, a significant increase from the current 880 MW. Chelliah further explained, “Nearly 500 MW of additional capacity is already under construction in major cities like Mumbai, Chennai, and Bengaluru. This opportunity extends beyond metros.”

While the demand for data centres is on the rise, not all organizations are keen on investing in and managing their own facilities. Chelliah highlighted that colocation services are an impressive alternative. The colocation market in India is projected to grow at a CAGR of 16 per cent, reaching a value of $1.4 billion by 2025, offering a cost-effective solution.

A key challenge faced in the data centre industry is the scarcity of a skilled workforce, requiring expertise in specialized areas such as structural design, cooling design, sustainability, edge computing, AIOps, and automation. Chelliah emphasized the importance of robust infrastructure for India to emerge as a global data centre hub, underscoring the need for uninterrupted power supply, reliable backup systems, and grid stability measures to prevent operational downtime and data loss.

In conclusion, as the data centre landscape in India evolves, the demand for both colocation and edge data centres is expected to grow significantly. With the government’s support and increasing data consumption in smaller cities, the market presents a promising opportunity for players in the industry to capitalize on the evolving trends and demand dynamics.


IANS, established in 1986, is India's largest independent news service, offering 24x7 news from India and South Asia, and a preferred source for diverse content across six business verticals.

Related Articles

This will close in 5 seconds