Kickass Role of data centres in advancing India’s digital revolution

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

Data centers play a critical and multifaceted role in India’s rapidly growing digital economy. They are far more than just buildings storing servers; they are the foundational infrastructure enabling India’s digital transformation.

About Role of Data Centres 

• 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 of Role data centre 

• • 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.

What do data centers fundamentally do?

Core Function of Data centres:

• Storage: Detail different types of data stored (personal, business, government).
• Processing: Explain processing for applications, analytics, AI.
• Connectivity: Emphasize high-speed networks and access for users.

How do they affect the Indian economy?

Economic Impact:

• Digital Economy Enabler: Connect to Digital India initiative, e-governance, e-commerce growth.
• Investment Hub: Mention India’s attractiveness as a data center location, reasons for investment.
• Job Creation: Include both direct (data center staff) and indirect (IT support, developers, etc.) jobs.

How do they impact society in India?

Societal Impact:

• Digital Services: Give examples like online banking, e-learning, healthcare.
• Improved Efficiency: Explain how data centers make services faster and more reliable.
• Access & Inclusion: While acknowledging the digital divide, note the potential for wider digital access.

Why are they strategically important for India’s future?

Strategic Importance:

• Data Sovereignty: Explain the growing importance of keeping Indian data within India, regulations, and national security.
• Digital India Vision: Directly link data centers to achieving the goals of Digital India.
• Self-Reliance (Atmanirbhar Bharat): Connect to building domestic tech infrastructure and reducing dependence.

What are the downsides or issues related to data centers in India?

Challenges/Considerations:

• Energy Consumption: Highlight sustainability issues, need for green energy.
• Location Challenges: Discuss land acquisition, infrastructure limitations, and regional disparities.
• Data Security & Privacy: Mention increasing cyber threats and data protection regulations.
• Digital Divide: Acknowledge that data centers alone don’t solve the divide, access is needed.
• Skills Gap: Note the need for skilled data center professionals.

• 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.

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What is the direction things are heading in?

Future Outlook:

• Growth Trajectory: Emphasize the projected rapid growth of the Indian data center market.
• Cloud Adoption: Highlight the role of data centers in supporting cloud services.
• Edge Computing: Mention the rise of edge data centers for localized processing.
• Sustainability Focus: Reiterate the importance of green data centers in the future.

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.

Read Also: Recently, Why do’s Train derail in India?