Infra status to boost data centre business in tier-2 cities

The newly-acquired infrastructure status for data centre industry is driving the growth of edge data centres in tier-2 cities where high-level technical jobs in artificial intelligence (AI) and machine learning (ML) are increasing in demand.

Edge data centres will be crucial to the growth and usage of 5G services as well, experts say.

Ind-Ra estimates that total investment in India’s data centre industry will touch `700-720 billion over the next 5-10 years. 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 infrastructure status will give companies more flexibility in availing of credit and managing resources, said the industry executives.

“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 hyperscale 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.” Tech AI