Why In News?
A study reveals that rapid data center expansion in hubs like Mumbai and Noida strains local resources through sudden electricity spikes and high municipal drinking water use for cooling.
What is a Data Centre?
A data center is a physical facility or building that houses computer systems, servers, data storage drives, and networking hardware used to store, process, and share digital information and applications.
Core Components
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IT Equipment: Racks of servers, high-capacity storage drives, routers, and switches that handle data processing and transmissions.
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Power Systems: Uninterruptible power supplies (UPS), backup diesel generators, and heavy-duty electrical lines to keep operations running 24/7 without interruption.
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Cooling Systems: Specialized air conditioners, chillers, and liquid cooling setups that remove massive amounts of heat to prevent equipment from failing.
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Security Measures: Biometric scanners, security guards, 24-hour surveillance cameras, and strict access controls to protect sensitive data.
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Network Connectivity: High-speed fiber-optic links connecting the facility to the outside internet and other networks.
Why are Data Centres Expanding Rapidly in India?
Surge in Data Consumption & 5G Rollout: India has over 1 billion internet subscribers consuming an average of 26.7 GB of wireless mobile data per user each month, ranking among the world's highest digital traffic consumers. (Source: TRAI)
Boom in Generative Artificial Intelligence (AI): Training and deploying large language models under the ₹10,371.92 crore IndiaAI Mission requires high-density graphics processing unit (GPU) server clusters that demand five times more computing power than traditional web hosting.
Statutory Data Localization Mandates: Section 16 of the Digital Personal Data Protection (DPDP) Act, 2023 and Reserve Bank of India (RBI) payment storage directives compel global technology corporations to store Indian citizens' personal and financial data within domestic geographic borders.
Strategic Real Estate & Infrastructure Status: The Union Government granted "Infrastructure Status" to data centres with more than 5 MW capacity in Budget 2022-23, providing access to long-term low-interest institutional loans and duty-free equipment imports.
State Government Tax Incentives: States like Maharashtra, Uttar Pradesh, and Tamil Nadu offer 100% electricity duty exemptions, subsidized land allotments, and dual-power grid connections to attract hyperscale investments.