Most of our DCs are currently concentrated in major metros like Mumbai, Delhi NCR, Bangalore & Chennai. Cities like Mumbai and Chennai have been traditional choices since most subsea cables have their landing stations in these cities. However, Delhi NCR has recently picked up the pace, keeping in mind the constant rise in demand for colocation services.
While the current batch of DCs have a considerable footprint (both in size and power) as they cater to hyperscaler requirements that need that kind of size, the future will see a healthy mix of edge data centers. In our view, there are two distinct reasons for this proliferation.
First, edge data centers will be an essential step toward the path of digital transformation in the rural sector along with Tier 2 &3 towns. These edge DCs will provide the necessary infrastructure to expedite many of the Government of India’s technology initiatives. Edge-based applications that support financial inclusion and literacy are just some of the use cases that can be created as a direct outcome of setting up these sites. It will also allow the local professionally skilled workforce to participate in this transformation.
Second, when we speak about emerging technologies, one cannot have a conversation without mentioning 5G, IoT, and AR/VR, amongst other things. The need for ultra-low latency, high bandwidth, and computing resources near the perimeter binds all of them. While technologies like AR/VR have existed for a couple of years, adoption at scale would need edge DCs.
Speaking about AR/VR, the most important use case is in the form of the Metaverse. While there is a lot of confusion (we are still trying to make meaning of it) about what Metaverse is, we are confident of 3 key things which will make it a “reality”:
- A source of processing power to support massive computing functions.
- The software behind these virtual platforms.
- The network supports the above two.
Essentially, the Metaverse will require constant, instantaneous, high bandwidth data transfers that are not possible without edge computing. High-capacity IT infrastructure would be necessary to support the idea of the Metaverse, making edge data centers more crucial than ever.
Our view is that while the hyperscalers will continue to dominate the big metros, they will be a balance in the form of edge data centers spread across the nation, making it a more stable platform for nationwide digital growth. know more….
