Market Trends of Chennai Data Center Industry
Government policies would advance the Investment of Data Centre
- The demand for players to store their data in India by the national government and Reserve Bank of India is helping the data center industry. With the help of the Tamil Nadu government, Web Werks has signed a Memorandum of Understanding (MOU) to construct a 20 MW data center with 100 employees here.
- The Tamil Nadu government announced a data center policy that allows the data centers to avail of an electricity tax waiver. For five years following the start of commercial operation, there is a 100% electricity tax subsidy on power obtained from the Tamil Nadu Generation and Distribution Corporation Ltd. or generated and consumed using captive sources.
- Chennai will be the second-largest location for Web Works in India. In India, the business includes data facilities in Mumbai, Pune, and Delhi. Additionally, it has data centers abroad. The Tamil Nadu government strives to release a unique data center policy to boost the ecosystem. The state administration claims that there are six 1 Gbps-capable undersea data cables. According to TRAI, Chennai is one of India's top five service areas for broadband subscribers.
- Additionally, Chennai is crucial to the world's undersea cable system. It acts as an alternate data exchange hub for the Asia Pacific thanks to its inherent advantages, including a sizable land supply that may be turned into cutting-edge data center facilities. Chennai eventually proves to be preferable because it moves more quickly than other options in this area due to its proximity. Tamil Nadu also has a fantastic chance to lead the way in sustainable development and green energy by luring international cloud and data center businesses searching for places that provide both.
- In February 2024, STT GDC India inked an MoU with the Tamil Nadu government, projecting an investment of up to INR 1900 crores. Over the next 5 to 7 years, STT GDC India plans to establish additional data center capacity, targeting an 80 MW critical IT load, across various strategic locations in the state.
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Increased Migration to Cloud & IT based Business Operations
- Cisco is increasing the number of data centers it has in India. As Indian businesses speed up migration to the cloud, Cisco invests in specialized cloud infrastructure to expand access to security services among Indian customers. Cisco has invested in a new data center in Chennai to fully realize the potential of cloud-delivered security to assist businesses in protecting devices, remote users, and distant locations.
- The new and renovated facilities will leverage industry-leading network performance to deliver agile, highly robust, high-capacity access closer to users, including big and small Indian businesses from various industries. This is essential in the hybrid workplace of today, as companies must transition from a static to a dynamic operating model, posing special cybersecurity issues. The demand for cloud data centers has dramatically expanded as a result.
- Demand for cloud services increased due to the pandemic, which required continuous data backup, and digital transformation sped up in all industries. Hyperscale data centers have seen an increase in investment due to the cloud transition. In direct proportion to the growth in data consumption and use of the cloud, the necessity for data centers has increased tremendously.
- AWS intended to create four new mini-data centers in Bengaluru, Chennai, Delhi, and Kolkata in February 2022. These local zones, built in densely populated areas, will provide cloud services for clients requiring near-zero application latency. In addition to providing server infrastructure, this data center provider provides managed databases, content delivery networks, cloud services, and other services. The platform offers its users the best uptime, security, scalability, AI, and machine learning standards.
