5G, AI, IoT and other technologies fuelling demand for next-generation data centers

Haresh Lalchandani, Head - Custom & Edge DC Build, Yotta Infrastructure

Growth of next-generation Data center market

In today’s digital world, the widespread adoption of 5G, Artificial Intelligence, Internet of Things, Big Data and Analytics and other technologies, is driving an exponential shift towards third party colocation, cloud, and usage-based IT services – all of which are fuelling demand for next generation of data centers. In addition, the widened scope of digital transformation with the proliferation of emerging technologies is resulting in a massive surge in data generation.

Another factor that will contribute to this growth is the government’s announcement granting data centers infrastructure status in this year’s Union Budget. It also announced several progressive steps to take the Digital India vision to new heights – from building digital universities and pushing for digital payments to integrating post offices with core banking systems and launching the Digital Rupee using blockchain. All these initiatives come together and dovetail with our focus on expanding our hyperscale data center footprint, complemented by Edge data centers for last-mile access.

A Challenge or Opportunity
Yotta is highly bullish on the Digital India growth story and sees it as a massive opportunity. The granting of infrastructure status in 2022 Budget announcement has provided impetus to bolster our contribution to the Digital India mission. In line with this vision, our Navi Mumbai campus already has the core and shell ready for a second data center called NM2. We also have the space to develop three more data center facilities on this very campus.

Yotta NM1 data center is a testimony to our efforts. We combine our world-class infrastructure with unmatched, always-on services guaranteed by SLA commitments and support. This further helps us gain a competitive edge and tap a larger share of opportunities.

IoT adoption to support next-generation data centers
As internet exchanges like DE-CIX India increasingly establish points-of-presence with data center players like Yotta, enhanced network performance, low latency, one-hop hyperscale cloud connectivity, and domestic and international internet peering services will become the norm. Such partnerships tie-in with low-latency edge requirements ensuring seamless, last-mile content delivery through a vast footprint of network nodes across the country. Interconnection and peering services, Edge data centers and IoT will soon combine to drive the next leg of data center growth.

Yotta is coming up with hyperscale data center parks and Edge data centers in strategic locations across India. Over the next year we aim to expand by going live with our data center projects in Maharashtra, Gujarat, Tamil Nadu, West Bengal and Delhi-NCR. These projects will deliver a capacity of 1030 MW by providing cloud, networking, and other ICT infrastructure. Coming to Edge data centers, the aim is to set up at least 100 such facilities across India with an investment of Rs. 900 crores over the next few years.

Expectation of high-level consolidation by 2023
We are currently witnessing another inflection point, driven by the pandemic, which has resulted in the growth of data-driven cloud services and OTT, fuelling data center demand. Although 2023 appears too soon for consolidation, the data center market requires significant investments and commitment. Eventually, the smaller players who forayed into the space will not see value, which might lead to a spate of mergers and acquisitions.