India’s data centre ecosystem is undergoing rapid transformation, with its current capacity at around 1,150 MW as of 2024, which is expected to double by 2030. The majority of this capacity is concentrated in Mumbai, Chennai, Noida, Hyderabad and Bengaluru, with hyperscalers utilising over 60 per cent of it.
The domestic data centre market, valued at roughly $5 billion in 2024, is expected to grow at a compound annual growth rate (CAGR) of 8 per cent, reaching an estimated $12 billion by 2030. Some industry forecasts suggest even higher growth, with the market potentially doubling at a CAGR between 13 per cent and 21 per cent. This rapid expansion reflects the increasing demand for digital services, cloud computing and data sovereignty.
Key drivers of growth
- Internet of things: The proliferation of connected devices across industries, homes and cities generates massive volumes of data requiring storage and processing.
- 5G roll-out: The nationwide deployment of high-speed 5G networks is enabling new applications that demand ultra-low latency and high bandwidth.
- Smart city initiatives: Government-led projects aimed at urban modernisation rely heavily on data analytics and real-time processing.
- Regulatory requirements: Data localisation mandates require sensitive data to be stored within India’s borders, driving domestic data centre capacity.
- Artificial intelligence (AI) and real-time analytics: AI workloads, including inferencing and machine learning, necessitate processing power close to
the end users in order to deliver instantaneous results.
The latency challenge and the rise of edge computing
While centralised data centres in metro hubs have traditionally handled most of the country’s data processing, this model is increasingly challenged by latency and network cost issues. Applications such as gaming, healthcare, autonomous vehicles and fintech require near-instantaneous data processing, which centralised facilities cannot always provide due to physical distance and network congestion.
Furthermore, the explosion of regional over-the-top content and localised data consumption patterns demand ultra-low latency infrastructure. This has led to a paradigm shift towards edge data centres – smaller facilities located closer to end users that reduce latency and improve performance by processing data locally.
Techno Digital’s vision and strategic initiatives
At the forefront of this transformation is Techno Digital, a 100 per cent subsidiary of Techno Electric & Engineering Company Limited (TEECL). The company is building one of the most extensive interconnected data centre networks in India, integrating hyperscale and edge facilities to deliver seamless, low-latency services across the country.
In partnership with RailTel Corporation of India Limited, Techno Digital plans to develop 102 edge data centres nationwide over the next five years. Their comprehensive deployment solutions cover site acquisition, renewable energy integration, design, engineering, construction, commissioning and operations, ensuring compliance with global data protection standards.
Leveraging over four decades of power sector expertise, TEECL has completed more than 400 projects and holds a strong financial position with zero debt and an “AA” stable credit rating. The company’s hybrid infrastructure strategy integrates centralised hyperscale hubs in Chennai and Kolkata with distributed edge centres, managed via centralised operations and security centres equipped with advanced IT tools. This unified framework ensures operational efficiency, regulatory compliance and seamless delivery of cloud and IT services closer to end users.
Techno’s hybrid infrastructure strategy integrates its centralised Chennai (36 MW) and Kolkata (20 MW) facilities with edge data centres across 102 locations. This combination delivers robust inter-connected centralised computing power alongside local, low-latency processing. Edge centres will be seamlessly interconnected with hyperscale facilities, ensuring efficient delivery of IT-managed and cloud services closer to end users. A unified operational framework guarantees consistent execution, regulatory compliance and operational efficiency across all hubs and edge locations.
Outlook
Looking ahead, the company aims to establish 250 MW of data centre capacity across Tier I, II and III cities by financial year 2030. Key facilities under development include the Gurugram centre, a 36 MW hyperscale data centre in Chennai (launching May 2025) and the Mumbai facility (completion by October 2025). Additionally, 12 more high-potential sites have been identified for future expansion.
India’s data centre sector is poised for robust growth, driven by digital transformation, regulatory support and the strategic shift toward edge computing. Techno Digital’s integrated approach and proven expertise position it at the forefront of this dynamic industry.
This article was published in Tele.net Magazine
