Data centre capacity in India has increased from about 375 MW (2020) to around 1500 MW (2025) | Current Affairs | Vision IAS

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In Summary

  • Data centres are secure spaces for computing equipment, crucial for digital economy services, emerging technologies like AI/IoT, and data security.
  • Key challenges include high operational costs, cybersecurity risks, skill shortages, and complex regulatory frameworks.
  • India promotes data centres via a draft policy, infrastructure status for large facilities, and TRAI recommendations for incentives and economic zones.

In Summary

These Data centres are located across the country such as Mumbai, Navi Mumbai, Hyderabad, Bengaluru, Noida and Jamnagar.

What is a Data Centre?

  • It is a dedicated secure space within a building / centralized location where computing and networking equipment is concentrated. 
  • Purpose: Collecting, storing, processing, distributing or allowing access to large amounts of data.
  • Applications like digital payments, cloud storage, and AI run on data stored and processed in data centres.

Significance of Data Centres

  • Backbone of the Digital Economy: It supports critical digital services such as online banking, digital payments etc. ensuring reliable data storage and processing.
  • Enabling Emerging Technologies: They provide the infrastructure required for Artificial Intelligence (AI), Internet of Things (IoT), big data analytics and 5G technology.
  • Strengthening Data Security: Domestic data centres help ensure secure storage of sensitive data, support data localisation policies, and reduce dependence on foreign infrastructure.
  • Job Creation: Data centres generate skilled employment opportunities in IT infrastructure management, cybersecurity etc. 

Key Challenges

  • High operational cost: Due to high power consumption, infrastructure maintenance etc.
  • Cybersecurity Risks: Growing threats to sensitive digital data require strong security systems.
  • Skill Shortage: Limited availability of skilled professionals in data centre and cloud technologies.
  • Complex regulatory frameworks: E.g. land acquisition, environmental clearances etc.

Initiatives to promote Data Centre Ecosystem in India

  • Draft Data Centre Policy (2020): Seeks to promote domestic manufacturing of data centre-related products.
  • Infrastructure Status to data centres with more than 5 MW capacity of IT load.
  • India’s first hyperscale data centre ‘Yotta D1’ has been set up in Greater Noida, Uttar Pradesh.
  • Telecom Regulatory Authority of India (TRAI): Recommended Data Centre Incentivization Scheme (DCIS), Data Centre Economic Zones (DCEZs) etc.
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RELATED TERMS

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Data Centre Economic Zones (DCEZs)

Designated geographical areas established to promote the development of data centers by offering benefits and streamlined regulatory processes, as recommended by TRAI.

Telecom Regulatory Authority of India (TRAI)

The independent statutory authority that regulates the telecommunications sector in India, responsible for setting policies and recommendations for the growth and development of the sector, including data centres.

Draft Data Centre Policy (2020)

A proposed policy by the Indian government aimed at promoting the domestic manufacturing of data centre-related products and fostering the growth of the data center ecosystem in India.

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