How is India Positioned to Become a Global Hub for Data-Driven Innovation?
Synopsis
Key Takeaways
- India's data centre industry is rapidly expanding.
- Government's vision focuses on data-driven innovation.
- Investment from Google signals confidence in the sector.
- Major hubs include MMR, Chennai, and others.
- Data centre capacity projected to grow significantly.
New Delhi, Nov 10 (NationPress) The Minister of Commerce and Industry, Piyush Goyal, convened an extensive meeting during the CEO roundtable focused on enhancing the ease of doing business (EoDB) within the data centre and artificial intelligence (AI) industries.
During the discussions, attention was directed toward fortifying the policy framework, regulatory protocols, and digital infrastructure to stimulate investment in cutting-edge technologies, the minister shared in a post on X.
He reiterated the government's ambition to establish India as a global nerve centre for innovation powered by data and excellence in AI.
“We are also reaffirming our dedication to constructing a future-ready, knowledge-based digital economy in alignment with the vision of Viksit Bharat,” Goyal added.
India's data centre sector is currently experiencing a significant surge, propelled by rapid digital transformation, increasing internet accessibility, and heightened demand for AI and cloud solutions.
With a monumental $15 billion investment from Google, India is strategically positioning itself as a pivotal global data hub. Projections indicate that the nation's data centre capacity will escalate from the existing 1.2 GW to approximately 8 GW by 2030, growing at an annual rate of nearly 17 percent, as reported by Trade Brains.
This expansion is set to make India one of the fastest-growing data centre markets globally. The rise in internet penetration and data consumption has been a vital catalyst for this growth.
Currently, India boasts over 260 operational data centres, primarily situated in major hubs like the Mumbai Metropolitan Region (MMR), Chennai, Delhi, Hyderabad, and Bengaluru. MMR and Chennai collectively account for nearly 70 percent of the total data centre capacity.
Data from Anarock Capital indicates that about 60 percent of data centre clientele consists of enterprises, 30 percent are hyperscalers such as Google, Amazon Web Services, and Microsoft, while the remaining 10 percent are AI users.