Gearing up for a trillion-dollar growth prophecy

Hyper-connectivity, AI surge, and evolving trends set the stage for a data centre evolution with massive investments and transformative impacts 

- VIPIN JAIN

By the time you are halfway through reading this article, close to 8 million search queries will have been generated on Google. That's just one example of living in an always-available, hyper-connected world. While the exact number is not known, it is estimated that 120 zettabytes of data and information are created, captured, copied, and consumed each day. This data needs to be stored and computed in a centralised place equipped with up-to-date computing and networking equipment to process and manage it. Data centres, the unsung heroes of the digital age, play a critical role in this scenario.

India finds itself on the cusp of a significant IT evolution, where data centres will play a pivotal role in keeping data at the center. The stage is set for both Indian and foreign companies to invest over Rs 1.5 trillion in the next six years, marking a six-fold growth. The country's data centre industry's revenues are expected to grow at a CAGR of 17-19% between FY23 and FY25.

The increasing adoption of technologies such as cloud computing and Artificial Intelligence (AI) across industry verticals has led to rising demand for high-quality data centre infrastructure for storage and networking. Predictions indicate that the generative AI market will surge from USD 40 billion in 2022 to USD 1.3 trillion over the next decade. Applications utilising generative AI require substantial computing power and data storage, prompting data centres to invest in and extend their infrastructure to meet this rising demand.

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