India has only 3 percent of the world’s data operations
India now stands at the forefront of the queue of those countries in the world, where it has become the cheapest and beneficial to build a data center. The latest report of Kotak Mutual Fund states that the cost of setting up data centers in India is the lowest than the rest of the big countries. This is the reason that foreign companies are also getting attracted towards India and the digital strength of the country is getting new pace.
1 watt data centers for $ 7
According to the report, it costs only $ 7 to prepare a watt data center in India. This cost is the lowest in the world. Now it is also important to know that China, which is considered a big player of technology, there is $ 6 per watt, ie a little less than India, but still India’s position is strong because this expenditure is more in the rest of the countries. Now talking about other countries, this expenditure in Japan is around $ 14 per watt. About $ 11 per watt in Britain. America, South Korea and Australia also around $ 10 per watt. Now you can understand why such a low cost in India is pulling big tech companies around the world here. Experts say that China can also lag behind India in this matter in the coming days.
Tremendous increase in demand for hypersscale data center
Data center There is a place where large amounts of digital information ie data is stored and processed. Earlier in 2019, such big ‘hypersscale data centers’ in India were only 5. But now by 2024, their number has increased to 15. That is, three times the increase. This means clear, due to increasing use of internet, apps, online service and digital payment in the country, the demand for data storage is increasing very fast. Collection space, that is, the place which is given to the big companies to store data, has also seen an increase of four times in the last five years.
State governments are also giving open concessions
The expenditure in setting up data centers is not limited to machines and buildings. Electricity, connectivity, land and other facilities are also necessary. In this, the state governments are also helping openly.
- Tamil Nadu made a policy in 2021, in which companies get 100% subsidy on electricity. Dual power supply and 50% wheeling charge is also given.
- Uttar Pradesh has given complete exemption on open access electricity and transmission fees.
- Telangana made a policy in 2016 itself, in which renewable energy (solar or wind power) and cheap fuel are getting.
- Maharashtra introduced a policy in 2023, in which life is being given lifetime discounts and subsidy of Rs 1 per unit for 5 years.
In this way, every state is offering a lot of attractive offers to call investors.
Laws are also promoting data center
Data centers in India are not increasing just because the expenditure is low or the concessions are being received. Some important laws made by the government are also the reason for this.
- In 2018, RBI ordered that payment companies will have to keep the data of India in India.
- SEBI implemented a similar rule for all financial companies in 2023.
- Under the DPDP Act 2023 (Digital Personal Data Protection), the government can now say that India’s data should not be sent outside the country.
Due to these laws, companies are both helpless and need to create their data centers in India.
Right now only 3% data centers
The report also states that only 3% of the total data centers of the world are in India today. Whereas India’s share in data consumption around the world is more than 20%. This simply means that there is a demand for data centers in India, but till now most of the data of the country has been stored abroad. In the coming time, this picture can change completely. Due to low cost, government support and strict laws, India is now moving rapidly towards becoming the next ‘data hub’ of the world.