India's Edge Data Centre Capacity Boost to Reach between 200-210 MW by 2027,Predicts ICRA
India's Edge Data Centre Expansion: Tripling Capacity by 2027
India is set to witness a significant expansion in its edge data centre capacity, with projections indicating a three-fold increase from 60-70 MW in 2024 to 200-210 MW by 2027 [1][2]. This growth will boost India’s digital infrastructure, making it more responsive to the demands of emerging technologies such as the Internet of Things (IoT), 5G, Artificial Intelligence (AI), and Augmented Reality/Virtual Reality (AR/VR) [1][2].
The Rise of Edge Data Centres
Edge data centres are smaller, decentralised facilities located closer to end-users and devices [1]. Unlike traditional data centres, which fuel mass-scale computing, AI, and cloud workloads, edge data centres enable real-time processing and localised services [1]. This is crucial for emerging technologies that require minimal latency for optimal performance.
Impact on Emerging Technologies
- IoT: Edge data centres enable localised, real-time data processing, essential for IoT devices that generate massive amounts of data at the network edge. This reduces latency and bandwidth issues, improving responsiveness and efficiency [1][2].
- 5G: The low-latency requirement of 5G networks benefits greatly from edge data centres being closer to end-users. Edge computing supports faster data handling, critical for enhanced mobile broadband and ultra-reliable low-latency communication applications within 5G ecosystems [1][2].
- AI: While traditional data centres handle large-scale AI model training and cloud workloads, edge data centres facilitate real-time inferencing and local AI services that require minimal delay, enhancing applications like autonomous systems and smart analytics [1].
- AR/VR: These immersive technologies demand instant processing to render graphics and interactions with negligible delay. Edge data centres provide the computing power near user devices to meet these stringent latency requirements, enabling better user experiences in AR/VR applications [1][2].
The Future of Digital Infrastructure
This expansion will enhance real-time processing capabilities and reduce latency, making India’s digital infrastructure more robust and responsive to emerging technology demands. Edge data centres complement traditional large data centres by focusing on localised, latency-sensitive computing needs, thus supporting India’s growing digital economy [1][3].
In the hub-and-spoke model, traditional and edge data centres are expected to operate efficiently across sectors such as healthcare, banking, agriculture, defence, and manufacturing. The Asia Pacific (APAC) region currently holds 24% of the worldwide edge data centre capacity, with Europe, the Middle East, and Africa (EMEA) region accounting for 32% [1].
It's worth noting that India is a relatively new entrant in the edge data centre market. Despite this, the current edge data centre capacity stands at around 5% of India's total data centre capacity [1]. The rentals for edge data centres are anticipated to be on the higher side compared to traditional data centres [1].
As of December 2024, the global data centre capacity (including cloud operators) is estimated at around 50 Gigawatt (GW) [1]. Approximately 10% of this global capacity is edge data centres [1]. In the Indian context, traditional data centres and edge data centres are complementary pillars of digital infrastructure.
[1] Source: Our brand name Staff's reports on India's edge data centre market. [2] Source: Media's international franchise, named India. [3] Source: Various industry reports and analyst predictions.
Data-and-Cloud-Computing: This expansion of edge data centres in India will see a tripling of capacity, as vast sectors like healthcare, banking, agriculture, defence, and manufacturing harness the power of edge computing [1].
Technology: Emerging technologies such as Internet of Things (IoT), 5G, Artificial Intelligence (AI), and Augmented Reality/Virtual Reality (AR/VR) will benefit immensely from this growth, as edge data centres support their real-time processing demands with minimal latency [1][2].
