Data centres business to shift to tier-2 with help of infrastructure tag

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Data centres business to shift to tier-2 with help of infrastructure tag
Data centres business to shift to tier-2 with help of infrastructure tag

The infrastructure status for data centres appears to be a significant step in transforming India into a global data-centre hub

Taking high level technical jobs in emerging technologies like artificial intelligence and machine learning to market of small cities, the data-centre industry sees its newly-acquired infrastructure status helping drive the growth of edge data centres in small cities.

Experts say edge data-centres will be essential to the growth and usage of 5G services as well, which is required for internet of things (IoT), gaming, etc.

Located close to the edge of the end-user network, edge data-centres are typically smaller facilities. They often connect to a larger central data-centre or multiple data centres.

Ind-Ra estimates that over the next 5 to 10 years, total investment in India’s data-centre industry will touch `700-720 billion. The infrastructure status will give companies more flexibility in availing of credit and managing resources with the industry seeking to expand outside the top cloud regions currently housed in the metros with edge data centres, and a massive regulatory need for data localisation.

The industry was accorded infrastructure status in this year’s Union Budget. The announcement is a definite signal of intent and encourages companies to push ahead with plans to expand capital investment, said Sunil Gupta, cofounder of Yotta, adding that it will help to pace the development of hyper scale data centres across key hubs in India.

“Data centres require a lot of capital expenditure. The infrastructure status for data centres appears to be a significant step in transforming India into a global data-centre hub”, said Gupta.

“Additionally, if you throw in value-added services like advanced analytics and IoT, this investment could rise four to five times. Granting infrastructure status eases concerns around securing finance for a capital-intensive project of this scale”. At present, a sizable part of Indian data centres’ footprint is in the top six to eight large Indian cities.

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