INDIA’S DATA & DIGITAL POWER

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) organized the 6th edition of the India Smart Datacenters & Cloud Infrastructure Summit 2024 & Excellence Awards on June 27-28, 2024, in Mumbai. The event, themed “Data Centre’s Strengthening India’s Digital Revolution,” aimed to recognize and celebrate outstanding achievements in the datacenter and cloud infrastructure sectors while promoting innovation and best practices.

The summit featured a series of panel discussions, keynote addresses, and interactive sessions led by industry experts, providing attendees with valuable insights into the latest trends and developments in the field. Key topics covered during the event included energy-efficient data centers, cybersecurity, data privacy, and data localization. The event stressed the importance of developing made-in-India sovereign cloud infrastructure to ensure robust data infrastructure and support the country’s digital economy while meeting local demands and compliance requirements.

Overall, ASSOCHAM’s efforts and initiatives aim to strengthen India’s digital revolution by promoting the development of data centers and cloud infrastructure, ultimately transforming the nation into a Global Data Hub, under the theme ‘Data Center: Strengthening India’s Digital Revolution.

At the ASSOCHAM India Smart Datacenters & Cloud Infrastructure Summit and Awards 2024, Shri Sunil Gupta, Chair of the ASSOCHAM National Council on Datacenter, emphasized the pivotal role of data across various sectors in driving the nation’s digital revolution.

Gupta noted that data serves as the backbone for almost every sector, ranging from finance and healthcare to retail, entertainment, government activities, and citizen-facing services. He explained that the increasing digital pervasiveness is pushing India towards becoming a digital-first economy, enabling the country to outpace other major global economies.

Shri Sunil Gupta, Chair, ASSOCHAM National Council on Datacenter and Co-Founder, MD & CEO, Yotta Data Services said, “Data is the foundational resource that underpins almost every sector from finance to health care to retail to entertainment to government-to-government activities and government to citizen facing services. Average data consumption which was just about 300 MB a few years back had already become 25 GB per month and by 2028 we will become the largest in the world in terms of per user data consumption at almost 62 GB per user per month. The digital pervasiveness is only becoming bigger making India a digital first economy leapfrogging us beyond every single largest global economy. From about 200 megawatts in 2013-14 we have grown to 1200 megawatt and we are just getting started. By 2027 we are expected to go to 2,000 megawatt. The development of our make in India sovereign cloud infrastructure will bolster data security and ensure regulatory compliance. A sovereign cloud ensures that data generated within India remains within country’s borders and also protected completely by local law and regulation.”

In this context, the summit aimed to promote the development of robust and secure data center infrastructure in India, fostering collaboration and innovation across industries. By recognizing data’s significance and leveraging its potential, India can position itself as a global leader in the data-driven world and maximize its digital transformation.

The country currently has more data in India than the US and China put together.

“Average data consumption which was just about 300 MB a few years back had already become 25 GB per month, and by 2028, we will become the largest in the world in terms of per user data consumption at almost 62 GB per user per month, said Sunil Gupta, Chair, Assocham National Council on Datacenter.” The digital pervasiveness is only becoming bigger, making India a digital-first economy leapfrogging us beyond every single largest global economy,” he said.

From about 200 megawatts in 2013-14, India has grown to 1200 megawatt.”

By 2027 we are expected to go to 2,000 megawatt. A sovereign cloud ensures that data generated within India remains within the country’s borders and also protected completely by local law and regulation,” said Gupta, also the Co-Founder, MD and CEO of Yotta Data Services.

By 2025, the Indian software-as-a-service (SaaS) market is expected to grow to $35 billion, with data centres contributing to this growth.

At the 6th ASSOCHAM India Smart Datacenters & Cloud Infrastructure Summit and Awards 2024, themed “Making India a Global Data Hub,” was marked by enlightening insights from distinguished speakers, including Shri Niranjan Hiranandani, Past President of ASSOCHAM.

Hiranandani emphasized India’s immense potential in the data center market, stating that the country’s data potential surpasses that of the United States and China. He also highlighted the rapid growth of physical infrastructure in Mumbai, predicting unparalleled development in the data center sector. With a focus on cost-efficiency, quality, and speed, Hiranandani expressed confidence in India’s ability to excel in the field, saying, “We can do it cheaper, we can do it better, and we can do it faster.”

Shri Niranjan Hiranandani, Past President ASSOCHAM and CMD, Hiranandani Group of Companies said, “We have more data in India than the US and China put together. Development of physical infrastructure is at an all-time high and Mumbai is going to see a sea change. Of the many development projects in the region, Data center will grow faster at a pace which is unprecedented in the annals of industry. We can do it cheaper; we can do it better and we can do it faster. All the three capabilities are there. Growth is imperative as far as the country is concerned. The paradigm that we really need to focus on is to make the lives of individual Indians better. We need to work collectively to ensure that the work we do creates wealth for the nation and meet the social needs of this country.”

The summit’s discussions revolved around the strategic role of data centers in driving India’s digital revolution, and the event aimed to encourage the development of a robust and secure data center infrastructure in the country. By leveraging its potential, India can position itself as a global leader in the data center market, fostering innovation and collaboration across industries and sectors.”

Growth is imperative as far as the country is concerned. The paradigm that we really need to focus on is to make the lives of individual Indians better,” said Niranjan Hiranandani, Past President Assocham and CMD, Hiranandani Group of Companies.

A report titled “The Strategic Role of Data Centres in Empowering India’s Digital Revolution” was launched at the summit, highlighting the crucial role data centers play in fostering innovation and collaboration across industries and sectors. The report emphasized the need for the data center industry to align with global standards and best practices to support the expected growth and maximize its potential.

A report by PricewaterhouseCoopers (PwC) and Assocham has suggested that the central government should introduce a single window clearance system for the data center industry. This recommendation aims to streamline the approval processes, which are often considered “lengthy and cumbersome” for data center projects.

A single window clearance system would provide a unified platform for submitting information and obtaining approvals, eliminating the need to approach multiple government departments separately. This approach has been successfully implemented in various sectors and several state governments, leading to faster clearances and improved ease of doing business.

The report highlights the significant growth potential in India’s data center market, with installed capacity increasing by 48% in the last three years. To capitalize on this growth and attract investments, a single window clearance system would play a crucial role in simplifying regulatory processes and fostering a business-friendly environment for data center operators and investors.

“The data centre industry faces somewhat lengthy and cumbersome approval processes involving multiple authorities, which can delay project timelines and increase costs,” the report titled ‘The strategic role of data centres in empowering India’s digital revolution’ said.“As a solution, the Government can implement a single window clearance system to streamline the approval process. This would centralise and expedite the permissions required from various departments,” it added.

The PricewaterhouseCoopers (PwC)-Assocham report emphasizes the substantial expenses associated with power cooling and infrastructure maintenance in the data center industry. To address these financial challenges and promote environmentally-friendly practices, the report suggests that the central government should introduce subsidies or incentives for adopting renewable energy sources.

The adoption of renewable energy can help data center operators reduce their operational costs and decrease their carbon footprint. Additionally, such incentives align with India’s commitment to increase its renewable energy capacity and contribute to the global effort to mitigate climate change.

By offering financial support for sustainable energy practices, the government can encourage data center companies to invest in green technologies and create a more eco-friendly and cost-effective industry. This approach not only promotes sustainability but also enhances the overall efficiency and competitiveness of India’s data center market.

“Government incentives for renewable energy use and stringent environmental regulations can drive the shift towards greener data centres,” it said.

During the ASSOCHAM India Smart Datacenters & Cloud Infrastructure Summit and Awards 2024, Shri Surajit Chatterjee, Co-Chair of the ASSOCHAM National Council on Datacenter, highlighted the sector’s impressive growth trajectory. Chatterjee noted that the industry experienced a surge in capacity from 350 MW pre-COVID to over 800 MW, with projections indicating further growth to exceed 1,600 MW by 2026.

Emphasizing India’s potential as an untapped global data hub, Chatterjee pointed out the country’s competitive advantage in terms of low data center construction costs. He also acknowledged the significant market opportunity that India presents for both hyperscalers and enterprises looking to expand their data infrastructure.

The summit’s overarching theme, “Making India a Global Data Hub,” underscored the importance of fostering growth within the data center and cloud infrastructure sectors. By continuing to support innovation and investment in these areas, India can capitalize on its potential to become a global leader in the data-driven economy.

According to Surajit Chatterjee, Co-Chair, Assocham National Council on Datacentre, Mumbai is leading the pack in terms of the largest data centre market share, followed by Chennai, Hyderabad and Bangalore. “We are now moving into tier 2 and tier 3 markets,” he added.

Shri Surajit Chatterjee, Co-Chair, ASSOCHAM National Council on Datacenter and Managing Director, CapitaLand Data Centre, India said, “Pre-COVID, data center typically hover around 350 odd megawatts and now we are about 800 plus megawatts. Looking at the growth we will likely cross the 1600 mark by 2026. From investment of 5 to 7 billion in 2000 to about 17 to 22 billion now, this shows the scope and potential for growth. India is an untapped global data hub, we have the lowest DC construction cost, large user market in terms of both hyperscalers as well as enterprise segments. Mumbai is leading the pack in terms of the largest data center market share, followed by Chennai, Hyderabad and Bangalore. We are now moving into tier 2 and tier 3 markets.”

Speaking at the ASSOCHAM India Smart Datacenters & Cloud Infrastructure Summit and Awards 2024, Shri Manoj Paul, Co-chair of the ASSOCHAM National Council on Datacenter, emphasized the pivotal role of data centers in powering India’s digital revolution.

Paul outlined several key areas where data centers are making significant impacts, including accelerating technology advancements, fostering innovation within the start-up ecosystem, enhancing the delivery of government services, facilitating remote work and education, and boosting overall economic growth.

By providing the necessary infrastructure for secure and efficient data storage, processing, and distribution, data centers play a critical role in enabling India’s digital transformation. As such, the summit aimed to promote investment and collaboration in this sector, ultimately supporting the country’s continued progress in the digital age.

During his industry address at the ASSOCHAM India Smart Datacenters & Cloud Infrastructure Summit and Awards 2024, Shri Manoj Paul, Co-Chairman of the ASSOCHAM National Council on Datacentre and Managing Director of Equinix India, highlighted the current state and potential growth of India’s data center market.

Paul observed that 50% of the market is currently centered in Mumbai, suggesting that the data business should expand its reach across the country to accommodate the ongoing data growth. He emphasized the importance of establishing India as a hub for smart datacenters and cloud infrastructure to drive market revenue and capitalize on the nation’s potential in this sector.

By diversifying the geographical distribution of data centers and promoting the development of cutting-edge infrastructure, India can solidify its position as a global leader in the data-driven economy. The ASSOCHAM summit provided an essential platform for industry leaders like Manoj Paul to share their insights and contribute to shaping the future of India’s data center and cloud infrastructure landscape.

A major focus of the summit was how data centers are strengthening India’s digital revolution:

1. Digital Infrastructure Backbone: Data centers serve as the foundation of digital infrastructure, enabling economic growth by fostering innovation and collaboration.

2. Support for Start-ups: The start-up ecosystem across FinTech, HealthTech, and EdTech relies heavily on data centers for scalable computing resources. By 2025, the Indian SaaS market is expected to grow from $13 billion in 2022 to $35 billion, with data centers contributing significantly to this growth.

3. Sovereign Cloud Development: The summit emphasized that developing made-in-India sovereign cloud infrastructure will enhance national security and resilience.