Techno Digital to Spend $1 Billion on Hyperscale and Edge Data Centres Throughout India
Chennai, India – With the Techno Digital announcement, India’s digital infrastructure sector is set to enter a new phase of development. Techno Digital plans to invest $1 billion within the next five years on a network of hyperscale and edge data centres to bridge India’s digital capacity gaps and position itself as a leading contributor to India’s technology-enabled growth.
Techno Digital also announced the opening of a 36 MW AI-ready hyperscale data centre in Siruseri Sipcot IT Park which marks the start of its expansion plans. With the anticipated growth in data centre demand—fueled by AI, 5G, cloud, digital infrastructure, and OTT services—India is set to have a sustainable backbone supporting its digital economy.
Why India Should Regard Data Centers as the Digital Backbone of the Country
Background context is just as important as the announcement itself. India is one of the largest consumers of data, but currently sits below 3% of global share in data centre capacity.
Data Consumption Surge: According to Nokia’s Mobile Broadband Index, India is set to consume 25% of the world’s mobile data by 2025.
Growth of the Digital Economy: The contribution of India’s digital economy is expected to grow to 20% of the GDP by 2030, up from 11% today.
Cloud Services Growth: Gartner estimates the public cloud services market spending in India to grow from $7.4B in 2022 to $17.8B by 2027.
In this view, data centers can be seen as strategically important cross infrastructure of the digital age, at par with highways and airports during the industrial era.
“India leads the world in data consumption. However, our share of global data centre capacity is less than 3%, which is probably one of the greatest opportunities of our time,” said Ankit Saraiya, Director & CEO of Techno Digital.
Chennai’s data centers are being marketed as the most advanced facilities in India.
The Chennai Hyperscale Facility: India’s AI-Ready Powerhouse
Hosting Capability:
- Advanced Facility boasts a remarkable hosting capability of approximately 2,400 high-density racks.
Power Flexibility:
- A flexible power range of 10kW to 50kW per rack and beyond is AI-ready.
Capacity:
- 36MW of IT load provides a competitive regional advantage
Space:
- 200,000 sq. ft. of hosting space makes the facility one of the most advanced data centres in India.
Water conservation: These vertical chillers don’t just save electricity, they also save water. Reducing water consumption by 75% is no simple feat!
Hyperscale vs Edge: A Dual Strategy
The $1B expansion for Techno Digital that was previously planned comes with two separate, yet intertwining, phases.
Hyperscale Data Centres
Designed to accommodate the cloud and global enterprises as well as government workloads. These hyper edge facilities provide unique services to diverse users.
Locations: Chennai (36 MW), Noida (18 MW by 2026), Kolkata (13 MW by 2027).
Edge Data Centres
These are more convenient, smaller, and can serve users efficiently.
Lower latency and immediate response times are key for: AI, fintech, gaming, telemedicine, and 5G applications.
Partnership with RailTel to deploy 102 edge data centres in 102 Indian cities, one of the largest rollouts in Asia.
The Bigger Picture: India’s $1.5 Trillion Digital Infrastructure Push
Techno Digital’s actions are in sync with India’s overarching goals:
- Digital India & BharatNet: Enhanced internet access for rural territories.
- National AI Strategy: Active government encouragement for AI integration in diverse industries.
- 5G Rollout: Expected to reach 700M subscribers by 2028 according to Ericsson.
- Green Growth: Aimed for net-zero emissions by 2070, India data centers are critical to that roadmap.
Market Competition
The Indian data center industry is facing aggressive competition as local and international players increase investments.
AdaniConneX (Adani + EdgeConneX): Plans to add 1 GW of data center capacity in India.
Reliance Jio Data Centres: Backed by Brookfield, focusing on AI and 5G-ready infrastructure.
Nxtra by Airtel: With 12 large facilities in operation, plans for further expansions of 400MW.
STT GDC India: Operates more than 20 data centres throughout the country.
Sustainability Has Techno Digital Focus as Core Pillar
Data centres globally consume 1-2% of the world’s electricity usage and this is expected to increase with the rise of AI tools.
- Renewable Power Integration: Taking advantage of TEECL’s wind and solar powering capabilities.
- Water Efficiency: Advanced cooling offers 75% reduced water use.
- High PUE Standards: Below 1.4 PUE targeting high standards and aligning with world benchmarks.
Economic & Employment Impact
The $1 billion projection is anticipated to:
- Directly and indirectly hire over 10,000 professionals in construction, operations, IT, and other supportive roles.
- Stimulate local economies in tier two and tier three cities.
- Allow Indian start-ups to gain access to scale without overly depending on foreign cloud service providers.
Policy & Regulatory Outlook
The data centre sector of India is a useful sector for the government to focus on.
Data Centre Policy 2020: Offering land, power and tax breaks.
PLI Scheme for Electronics & Semiconductors: Supports the ecosystem of data centers indirectly.
Digital Personal Data Protection Act 2023: This will increase the demand for local storage of sensitive data.
Looking Forward: Competition to Build A Digital Infrastructure
India’s data center market is projected to increase from 1.3 GW to 17 GW by 2030, as per JLL.
Through its 250 MW capacity plan, Techno Digital aims to capture a significant share of this growth.
“I envision the company building the largest footprint of sustainable data centers in India to empower enterprises, bringing the digital revolution to the nook and corners of the country as the vision going forward,” Saraiya concluded.
Techno Digital’s $1 billion commitment, India’s digital future. As the world enters the age of AI, IoT, 5G and cloud-first economies, India requires agile digital infrastructure.
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