According to the union minister of commerce and industry, India’s data centre industry could represent an investment opportunity of $700-800 billion as the government works with industry stakeholders to address key constraints related to power, land, approvals, infrastructure and skilled manpower.
The issues were discussed at a roundtable chaired by minister, which brought together representatives from various central and state government departments and data centre industry stakeholders.
According to chairman of Turner & Townsend, several concerns raised by the industry were addressed during the meeting, while subcommittees have been formed to examine issues requiring further deliberation. He said the industry is facing challenges including delays in securing power connectivity, power surges and shortages of skilled manpower.
Meanwhile, head, data centre leasing, JLL APAC, mentioned that the discussions covered the wider data centre development ecosystem, including power infrastructure, land, construction and environmental clearances. He added that the government is targeting $200 billion in investment in the sector.
Further, chief operating officer, Microsoft India and South Asia, highlighted that the discussions focused on improving the ease of doing business for data centre operators and highlighted the company’s expansion of hyperscale infrastructure in India.
Furthermore, chief executive officer, Tower Vision India, said India’s comparatively competitive infrastructure and operating costs could support continued growth in the sector.
The discussions also highlighted the need to expand domestic capacity for hosting sovereign data. President of Yotta Foundation, said India needs greater data centre capacity to ensure that critical data can be hosted within the country. He added that Yotta plans to organise a sovereign data centre conclave.
He also noted that India’s data centre capacity remains lower than that of developed markets and said capacity expansion will become increasingly important as the growth of artificial intelligence drives demand for computing infrastructure.