The rise of edge data centres is crucial amidst the exponential growth of India’s digital ecosystem. These smaller, decentralised centres reduce the need for large core data centres and minimise reliance on long-distance backhaul connections. As more data is processed closer to end-users, the infrastructure for supporting the delivery of data services becomes more distributed, increasing the demand for efficient, localised data processing.
In this scenario, the role of tower companies (towercos), optical fibre cable (OFC) providers and other digital infrastructure providers (DIPs) is critical in shaping the country’s data centre landscape.
One of the most exciting developments in the digital infrastructure space is the opportunity to repurpose existing assets. Towercos, for instance, can support the evolving needs of industries that depend on cutting-edge technologies by repurposing their towers to host edge data centres. Their pan-India presence makes them ideal for accommodating edge data centres. With 5G expected to enable a wide range of applications, the need for proximity in data processing is even more pressing, as real-time applications such as autonomous vehicles and the low-latency requirements of technologies such as internet of things (IoT) and cloud services rely on quick and uninterrupted data transfer.
Similarly, OFC providers, which have historically focused on meeting the needs of telecom service providers, are now able to expand their services to cater to the specific requirements of data centre service providers. While OFC providers have traditionally played a supporting role in telecom infrastructure, they can now play a key role in the digital infrastructure ecosystem by repurposing their existing deployments to better serve data centres.
Meanwhile, as digital infrastructure continues to evolve, providers are increasingly looking inward, seeking to integrate their services directly into buildings and facilities. Understanding how data flows from the point of generation to back-end servers is essential for the smooth operation of data centres. In this context, DIPs play a critical role in enabling the flow of data inside buildings and across broader network infrastructure.
Both telecom service providers and data centre providers struggle to find adequate space, navigate complex electricity connections and manage the technical demands of cooling systems. Furthermore, protecting infrastructure from vandalism and theft remains a constant concern.
Telecom infrastructure providers are particularly well equipped to manage these challenges, given their extensive experience in handling such operational complexities. Approximately one-third of the workforce in telecom infrastructure companies is dedicated to managing these tasks, which include securing locations, ensuring power supply and overseeing the maintenance of critical infrastructure.
Further, as India continues to ramp up its digital infrastructure, the need for sustainable, energy-efficient solutions is more pressing than ever. Telecom infrastructure providers, particularly those involved in data centre operations, play a critical role in ensuring the provision of green, uninterrupted power. In this regard, the Green Energy Open Access policy, updated to reduce the open access transaction limit from 1 MW to 100 kW, marks a significant step towards sustainability. The proliferation of green energy sources is expected to significantly reduce the environmental impact of data centres and telecom infrastructure.
That said, more use cases and cross-sectoral collaboration are needed to explore the full potential of DIPs in advancing the country’s data centre industry. The government has a vital role to play in facilitating this. For example, allowing private sector players access to data on the Gati Shakti portal can be critical as it provides insights into valuable information related to data infrastructure, such as land availability, power grids, fibre cables and other street furniture, enabling the timely and cost-effective establishment of plug-and-play data centres.
In sum
As India moves towards a more digitally connected future, the role of DIPs is essential in ensuring that the country’s data centres can meet the rising demands of a 5G-powered world. From repurposing existing assets to supporting green energy initiatives and promoting the growth of edge data centres, DIPs are at the forefront of India’s digital transformation. Further, enabling cross-sectoral collaboration will be key to unlocking additional use cases and accelerating data centre development across the country.
Based on remarks by Manoj Kumar Singh, Director General, Digital Infrastructure Providers Association
