Data centers are physical facilities used to house computer systems and associated components, such as telecommunications and storage systems. They are essential for the efficient processing, storage, and retrieval of large volumes of data.

Data centers play a crucial role in today’s digital age, where data is considered the new oil. India, a rapidly developing country, has experienced a significant increase in the importance of data centers in recent years. In this article, we will explore why data centers in India are given an infrastructure status by the Govt of India, the growing need for Indian data centres, and their future.

I. Importance of Data Centers in India

The digital transformation of India has led to an increase in the importance of data centers. With the government’s Digital India campaign, more people have access to the Internet, which has led to a surge in Internet users.

As of January 2021, India had over 700 million internet users, making it the world’s second-largest internet market. This has led to the emergence of startups and e-commerce, which have driven the growth of the data center industry.

Furthermore, the Indian government has launched various initiatives to promote digitisation, such as the BharatNet project, which aims to provide high-speed broadband connectivity to all villages in India. The adoption of these initiatives has created a need for more data centers to store and process the massive amounts of data generated.

II. What are the data center ratings differences between tier 3 and tier 4 data centers?

data centers in india

Datacenter ratings are used to classify data centers based on their design and operational characteristics. These ratings are used to help organizations evaluate the reliability and performance of a data center facility before choosing to host their critical IT infrastructure in the data center.

One of the most commonly used rating systems is the Uptime Institute’s Tier Standard Data Center. This rating system is based on a tiered approach, with Tier 1 being the lowest and Tier 4 being the highest. The differences between Tier 3 and Tier 4 data center facilities are as follows:

Tier 3 Data Center Facility:

A Tier 3 data center facility is a concurrently maintainable data center with redundant component systems, which can provide 99.982% availability. The Tier 3 data center facility provides a high level of availability and is recommended for organizations that require high levels of uptime and redundancy, but not the highest level of availability.

Some of the key features of a Tier 3 data center facility are:

  • Dual-powered equipment and multiple uplinks
  • Concurrently maintainable infrastructure components
  • Redundant components and systems for power and cooling
  • N+1 redundancy for mechanical and electrical systems
  • Fault-tolerant design

Tier 4 Data Center Facility:

A Tier 4 data center facility is a fault-tolerant data center with redundant components and systems, which can provide 99.995% availability. The Tier 4 data center facility hosted with a web hosting mumbai service provides the highest level of availability and is recommended for organizations that require the highest level of uptime and redundancy.

Some of the key features of a Tier 4 data center facility are:

  • Dual-powered equipment and multiple uplinks
  • Fault-tolerant infrastructure components
  • Redundant components and systems for power and cooling
  • 2N+1 redundancy for mechanical and electrical systems
  • Multiple active power and cooling distribution paths

In summary, a Tier 3 data center facility provides high availability, while a Tier 4 data center facility provides the highest level of availability and is fault-tolerant. The choice between a Tier 3 and a Tier 4 data center facility depends on an organization’s specific needs and requirements.

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III. Growth of India’s Data Centers

The growth of data centers in India has been substantial in recent years.

India’s data centre market size was estimated to be worth $4.5 billion in 2020, with a projected compound annual growth rate of 12% from 2021 to 2026. This growth is due to the emergence of data center providers such as NTT, Equinix, and STT Telemedia, among others.

Moreover, there has been significant investment in infrastructure, with data centers being built in locations such as Hyderabad, Mumbai and Chennai. India’s National Optical Fiber Network, which aims to provide high-speed internet connectivity to all households, has also contributed to the growth of data centers.

The shift towards sustainable practices has also been evident in the data center industry in India. Providers have started adopting green energy sources such as solar and wind power, with some even achieving carbon neutrality. Additionally, the adoption of new technologies such as AI and machine learning has led to improved efficiency and reduced energy consumption.

IV. Challenges faced by the Indian data center industry

The challenge of operating a data center facility in India is multifaceted. The country has a large population, with major cities such as Mumbai, Chennai, Hyderabad, Bangalore and Delhi having a high density of data centers. This makes it difficult to find suitable locations for new data centers due to the competition for space.

Additionally, the cost of power in the Indian data centre is higher than in other countries, which can make running a data center expensive. Furthermore, there are also challenges related to infrastructure and connectivity that need to be addressed to ensure reliable operations.

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To overcome these challenges and make datacenter facilities successful in India data companies must invest in advanced technologies such as cloud computing and docker containers. These technologies can help reduce costs associated with running a data center while improving its efficiency.

Additionally, datacenter companies should focus on building strong relationships with local governments and providers to ensure access to reliable power sources and infrastructure.

V. The Role of Data Centers in the Indian Economy

Indian Data centre plays a crucial role in the economy by creating jobs, contributing to the GDP, and improving the overall digital infrastructure. With the growth of data centers, new job opportunities are created in areas such as data center operations, maintenance, and management. Moreover, the data centers industry contributes to the GDP through direct investment, taxes, and other fees.

The India Datacenter also improves the overall digital infrastructure, which attracts foreign investment. By providing reliable, secure data storage and processing capabilities, data centers play a vital role in ensuring the stability of the growth of the digital economy.

VI. Environmental Impact of Data Center in India

Data centers in India are becoming increasingly important for businesses, organisations to store and access their data. But with this, increased reliance on data centers comes a greater concern about the environmental impact of these facilities.

The good news is that data centers can be designed, and operated in ways that minimize their environmental impact. By using energy-efficient components, utilizing renewable energy sources, and implementing other strategies, the data center can reduce its carbon footprint while still providing reliable services.

For example, Google has taken steps to reduce its energy consumption by using efficient cooling systems and servers that use less power. Additionally, the Indian data center has invested in renewable energy sources such as wind and solar power to help offset its electricity usage. Other companies have also implemented similar strategies to reduce their environmental impact.

A data center can also benefit from advances in technology such as artificial intelligence (AI). AI can help optimize the performance of data centers by reducing the amount of energy needed to run them. This could lead to significant savings in electricity costs while still providing reliable services.

Overall, data centers can be designed and operated in ways that minimize their environmental impact while still providing reliable services. By investing in efficient components, utilizing renewable energy sources, and leveraging advances in technology such as AI, companies can reduce their carbon footprint while still meeting customer needs.

VII. Technologies available in data centers for improving performance and efficiency

There are several advanced technologies available in data center facilities to increase efficiency and performance. Here is an overview of some of the key technologies:

  1. Artificial Intelligence (AI): AI technology can be used to optimize data center operations to improve energy efficiency. AI algorithms can analyze data center infrastructure to predict potential failures, allowing data center operators to proactively address issues before they cause downtime.

  2. Internet of Things (IoT): IoT devices can be used to monitor, and manage data center infrastructure, such as cooling systems, to optimize energy usage to improve performance.

  3. Edge Computing: Edge computing involves processing data at the edge of the network, closer to the source of the data, rather than in a centralized data center. This can improve performance to reduce latency for applications that require real-time processing.

  4. Liquid Cooling: Liquid cooling technology involves using a liquid coolant to cool server equipment, which can be more efficient than traditional air cooling methods. Liquid cooling can reduce energy consumption to increase server density in a data center.

  5. Renewable Energy: Renewable energy sources, such as solar and wind power, can be used to power data center facilities. This can reduce carbon emissions, and energy costs to make data centers more sustainable.

  6. Modular Design: Modular data center design involves using pre-fabricated components to build data center facilities. This can reduce construction time, and costs and can allow for more flexible scalability customization.

  7. Virtualization: Virtualization technology involves creating virtual machines (VMs) that can run multiple operating systems and applications on a single physical server. This can increase server utilization to reduce energy consumption by consolidating workloads.

By leveraging these advanced technologies, data center facilities can improve their efficiency, performance, and sustainability. Data center operators should consider these technologies when designing, and building their data center infrastructure to ensure that they can meet the increasing demands of today’s digital age.

VIII. Which are the top Indian data center for 2022?

With the increasing demand for data storage, India has seen a surge in the number of data centers in the country. Cloudscene’s H2 2022 Data Center Ecosystem Leaderboard Results provide an updated view of the top data center operators and facilities worldwide based on verified data. This report helps businesses make informed decisions regarding data center services by providing comprehensive and reliable data.

The top 10 data centers in India service providers in 2022 are Equinix: Asia’s number one data center that provides the strongest interconnection platform in the region, NTT Data Center: Asia’s top 2 cloud service provider, Sunevision, STTelemedia Data Center: Leading data center provider in Asia-Pacific with reliable assets across key economic hubs, Web Werks, Digital Realty, Sify, Global Switch, AIMS, and KINX are the other top 10 datacenters in Asia for 2022.

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IX. Future of Indian Data Centers

The future of data centers in India is looking very promising. With a population of over 1.32 billion, India is the #9 globally-ranked country on Cloudscene based on data center density. Currently, there are 138 data centers (DCs) across India with ~11 mn sft & 737 MW of IT capacity (building ready). At least 57% of the current capacity is expected to be utilized by 2025, and 45 new data centers are planned to come up by then. This will help the Indian data centre industry grow from its current worth of $5.6 billion dollars to an estimated USD 8 billion by 2026.

The National Informatics Centre (NIC) has also set up state-of-the-art National Data Centres at NIC Headquarters Delhi, Pune, Bengaluru, Mumbai and Hyderabad to address the ever-growing demand for the India data centers. Major players like Microsoft are also contributing to this growth by building the largest data center in India which is expected to be operational soon.

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X. Top Datacenter Rankings websites

Several websites provide rankings and information on data centers. Some of the top data-ranking websites are:

  1. Cloudscene: Cloudscene is a global directory of data centers, cloud service providers, and network fabrics. They provide a comprehensive list of data centers and their details, including location, services, and ratings.

  2. Data Center Map: Data Center Map is a global directory of data centers that allow users to search for the data center by country, region, and city. They provide a comprehensive list of data centers and their details, including services, certifications, and connectivity options.

  3. Uptime Institute: Uptime Institute is a global advisory firm that provides certification, education, and consulting services for data centers. They have developed the Tier Standard, which is a globally recognized benchmark for data center design and operation.

  4. Gartner: Gartner is a global research and advisory firm that provides information on technology trends, insights, and rankings. They provide rankings and analysis of data center providers based on their market share and capabilities.

  5. Datacenter Dynamics: Datacenter Dynamics is a global media and events company that provides information on data center trends, news, and analysis. They provide rankings of data center providers based on their market share, services, and capabilities.

These websites are useful resources for companies looking to evaluate data center providers and make informed decisions about their data center strategy.

XI. Conclusion – Data Centers Growth in India

The anticipated expansion of data centers in India is fueled by the rising demand for cloud services, edge computing, and dedicated cloud servers within the country. Although these prospects are promising, the sector confronts several obstacles, including insufficient power infrastructure, a workforce with the necessary skills, and appropriate regulatory frameworks.

The Indian data center market is projected to experience significant growth between 2023 and 2027, driven by factors such as rapid digital transformation, cloud infrastructure adoption, and 5G service penetration. In 2021, the market was valued at around USD 4.85 billion, with a CAGR of 10.3% estimated for the period 2023-2028. This growth positions the market to reach nearly USD 9.23 billion by 2027.

The Digital India initiative, data localization law, and classification of data centers as infrastructure assets by the Indian government are key factors driving this growth. These initiatives have attracted major investments from local and global players such as AWS, Google, and Microsoft, as well as new entrants like AdaniConneX and Equinix.

The market encompasses various segments, including services, solutions, network, server, storage, UPS systems, generators, cooling systems, building design, and physical security components. Key industries investing in data centers and dedicated server hosting in India include banking, financial services, insurance, healthcare, government, defense, manufacturing, IT, telecom, retail, and energy sectors.

The increasing adoption of data centers in the telecom and healthcare sectors further boosts market growth. Consequently, the Indian data center market is expected to witness robust expansion between 2023 and 2027, contributing significantly to the nation’s digital infrastructure and economy.


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XII. References

  1. “India Has Over 700 Million Internet Users, Second Largest in the World,” News18, 28 January 2021,
  2. “Indian Data Center Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026),” Mordor Intelligence,
  3. “Data Centers India: Growth And Challenges Ahead,” Analytics India Magazine, 23 March 2020,