India's data centre capacity expected to triple by 2025
India’s data centre market is expected to exhibit some of the most robust growth opportunities in the world. Over the next five years, the industry expected to expand its capacity from 375 MW in the first half of 2020 to 1,078 MW by 2025.
According to the findings of a new report by Jones Lang LaSalle (JLL), an American real estate firm and India's largest professional services firm specialising in the real estate sector, the Indian data centre market represents an investment opportunity of more than US$4.9bn.
The report, (re)imagine Data Centres Running India’s Digital Economy was released earlier this week and finds that new data protection laws, the growth of hybrid cloud and colocation data centres, and growing adoption of 5G, edge computing and the internet of things (IoT) will be a source of sustained growth across the region.
“India’s data centre market will outperform over the next five years, supported by a combination of growing digital economy, increased investor interest and stable long-term returns. Growth in the sector will be further powered by colocation sites which, via, lower upfront costs, heightened data security, uninterrupted services and scalability will, further, influence investors to reimagine the potential of India’s data centre space,” commented .
“The 703 MW expected capacity additions is translating to 9.3mn sq. ft. of space, which will open up greenfield investments for real estate developers and investors to fuel the future development of the sector.”
India's digital economy has been heavily reliant on the data centre industry over the past several months of lockdown - Image courtesy of JLL
These findings come off of the back of an exceptionally strong first half of the year for the Indian data centre market. As a nationwide lockdown drove online traffic to record highs, from an average of 270 petabytes (PB) to 308 PB during the week of March 22nd, which represents a 14% rise in daily data consumption during lockdown. The data centre industry, particularly in Mumbai and Chennai , has been instrumental in powering India's digital economy throughout the pandemic so far. "Data centres are India’s backstage warriors, which enable seamless and remote working-and-living. The dependence of several industries on digital infrastructure has partially helped mitigate the impact of the lockdown," added Nair. Even beyond the COVID-19 pandemic, JLL sees the ongoing digitalisation of India's economy - driven by industries like ecommerce and online education - to increasingly place data centres at the forefront of the country's economic ambitions.
“Powered by the transition to work from home arrangements during lockdown, the country’s data centre industry became the backbone of the digital economy and ensured a level of business continuity and sustained large portions of the country’s education system,” said . “Given shifts in the economy, we will continue to see data consumption increase manifold for the foreseeable future.”
Schneider Electric reveals new IT Innovation report
Schneider Electric has released a new IT innovations report titled “Digital Economy and Climate Impact”, with the aim of gaining an understanding of how digitised and smart applications will be powered in the future. The company says that the report predicts that IT sector-related electricity demand is expected to increase by almost 50% by 2030.
Despite this, the report also shows that emissions would not increase by more than 26% by the same year, following the decarbonisation of the electricity system. In an attempt to reduce this rise in emissions the Schneider Electric TM Sustainability Research Institute recommends continued efforts in achieving efficiencies on the IT and energy sides at both the component and system levels.
The report highlights how the rise of edge computing technologies require a “specific focus” due to these systems being less efficient than hyperscale data centres. “When the world locked down, it also logged on and internet traffic soared,” said Pankaj Sharma, EVP, Secure Power, Schneider Electric.
“It’s misleading to assume that digital activity will inevitably result in a deeply problematic increase in CO2 emissions. The analysis from the Schneider Electric Sustainability Institute puts to rest many of the worst-case scenario claims predicting IT-related electricity use will double every five years. That said, as an industry, we must remain vigilant in finding new sources of sustainability gains while ensuring resiliency as digital keeps life moving forward”, he added.
As well as the release of the report, Schneider Electric also announced several updates to its EcoStruxure IT data center infrastructure management software, Galaxy VL 3-phase uninterruptable power supply (UPS), introducing an industry-leading single-phase UPS, the APC™ Smart-UPS™ Ultra. All introductions are designed to advance the industry forward in meeting sustainability goals while increasing the resiliency of IT and data centre infrastructure, the company said.
Managing hybrid data center and edge IT environments
Also showcased in Schneider Electric’s report are the increasing demands on digital consumption. According to the company, these create a more complex hybrid environment inclusive of enterprise, cloud, and edge data centres. Addressing the unique management challenges of a hybrid IT environment, Schneider Electric has announced updates to its EcoStruxure IT software to increase efficiency and resiliency, including:
- Increased remote management capabilities: New granular remote device configuration features enable users to change configurations on one or more devices – including the new Galaxy VL and APC Smart-UPS Ultra single-phase UPS units – from one centralised platform with EcoStruxure IT Expert. This update, combined with previously released software insights on device security health, enables the user to identify faulty devices or configurations and address them in a matter of clicks, keeping their hybrid IT environment secure.
- Improved environmental monitoring: Environmental monitoring systems ensure users have eyes and ears on data centre and IT deployments from anywhere, anytime. With this update, users can push mass configurations remotely for NetBotz cameras 750 and 755 quickly and efficiently increasing security across the critical infrastructure.
- Enhanced remote capacity modeling and planning: With EcoStruxure IT Advisor’s new capabilities, users can remotely compare an unlimited number of racks and easily identify available capacity, view what assets are deployed and their dependencies.
Sharma concluded: “Schneider Electric has been focused on sustainability for the past 15 years and was recently named the most sustainable corporation in the world. We have embraced the mindset that future innovation will deliver better efficiency across the broader connectivity landscape. By making smart intentional choices, our industry can help mitigate how much electricity and emissions result from the rising appetite for digital technologies”.