DATA CENTRE

NEWS: Data centre capacity in India has increased from about 375 MW (2020) to around 1500 MW (2025)

Data Centre

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

Significance of Data Centres

• Supports critical digital services such as online banking, digital payments etcàReliable data storage and processing.
• Enabling Emerging Technologiesà Provide the infrastructure required for Artificial Intelligence (AI), Internet of Things (IoT), big data analytics and 5G technology.
• Strengthening Data Securityà Domestic data centres help ensure secure storage of sensitive data, support data localisation policies, and reduce dependence on foreign infrastructure.
• Data centres generate skilled employment opportunities in IT infrastructure management, cybersecurity etc.

Key Challenges

• High operational costà Due to high power consumption, infrastructure maintenance etc.
• Cybersecurity Risksà Growing threats to sensitive digital data require strong security systems.
• Skill Shortageà Limited availability of skilled professionals in data centre and cloud technologies.
• Complex regulatory frameworksàg. 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)à Recommended Data Centre Incentivization Scheme (DCIS), Data Centre Economic Zones (DCEZs) etc.