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Posted 23 Jul 2024

2 min read

The joint report by ASSOCHAM and PwC highlights role of Data Centres in advancing India’s digital landscape.

About Data Centre & their Significance

  • Data Centre is a dedicated secure space where computing and networking equipment is concentrated for the purpose of collecting, storing, processing, distributing or allowing access to large amounts of data.
  • Significance 
    • Key enablers to the digital revolution in India, transforming Government services, enabling remote work and education and Fostering start-up innovation.
      • Indians will consume the most data in the world by 2028, ahead of developed markets such as the US. 
    • Integration of emerging technologies such Artificial intelligence (AI), internet of things (IoT) etc. into different services. 
    • Facilitating data localisation by enhancing storage facility. 

Key Challenges 

  • Data centre are mainly concentrated in cities like Mumbai, Chennai, etc. 
  • Complex regulatory frameworks including land acquisition, environmental clearances etc. 
  • High operational expenses due to high power consumption, infrastructure maintenance etc. 

Key Recommendations 

  • Regulatory Compliance: Itcan be done through Practices like audit trails, data governance, etc. 
  • Increased investment in R&D:  Developing efficient technologies to reduce power consumption. 
  • Other: Create a data centre ecosystem in Tier 2 cities, etc. 

Initiatives taken to promote Data Centre Ecosystem 

  • Digital India (2015): Provides for enhanced online infrastructure and internet connectivity. 
  • Draft Data Centre Policy (2020): Seeks to promote domestic manufacturing of data centre-related products.
  • Other:
    • National Informatics Centre (NIC) has set up state-of-the-art National Data Centres.
    • Government has accorded infrastructure status to data centres (with more than 5 MW capacity of IT load).
    • State’s policies like Maharashtra’s IT and ITES Policy 2023 offers benefits to the data centre industry.
    • India’s first hyperscale data centre ‘Yotta D1’ has been set up in Greater Noida, Uttar Pradesh. 
  • Tags :
  • Data Centre
  • Digital Revolution
  • Draft Data Centre Policy
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