The data center outsourcing in India, otherwise called hyperscale data centers, has started shifting towards tier two and tier three cities due to abundant space and higher growth in demand for data services. Nxtera is an information technology and communication services company based in India, popularly known as Bharti Airtel. NTT from Japan and CtrlS from India are going to some of the emerging cities, such as Kochi, Jaipur, and Lucknow, because of the infrastructure development and lower cost to initialize new data centers.
The fact that transactions and web traffic increased massively in these regions has compelled data center operators to invest in these geographical locations for faster and more efficient service delivery due to the onset of 5 G. Efforts by the government and better connectivity consequently hold the promise to develop these tier II and III cities as economies of scale, as well as cater to the increasing digital requirements of the consumers across the country.
Cost-Effective Real Estate in Smaller Towns
Due to the high price of land in Mumbai, Delhi, and other metros, smaller towns like Pune are being opted for data center development. Here, the cost of land is considerably cheaper than in the other areas, thus making it beneficial to the establishment of companies. This helps business organizations establish giant data centers within a short time when they do not have to spend so much on real estate.
Lower land costs also mean that data centers can invest in better infrastructure and technology. This can lead to more efficient data storage and processing, which helps in managing the growing amount of data from users in smaller towns. As a result, these towns can become new hubs for tech companies, while major cities see less strain on their already crowded markets.
Rising Demand for Data in Regional Areas
India is undergoing the process of digitalization, where more and more people, particularly in Tier II, III, and IV cities, are active internet users. Growing mobile users and internet services make the requirement for data centers to store and manage a large amount of data. This is because, with increased usage of the Internet for things like shopping and entertainment, it becomes necessary to establish data centers closer to the users.
It is also possible to address this demand more effectively by having the data centers located in such towns and cities. It helps to shift the load from big data centers that are already present in large cities so that users in remote areas can also avail of fast and good internet connections. Having such data centers locally will be a plus since it might increase the efficiency and services offered, which results in a better experience for many people.
5G Technology and the Need for Edge Data Centers
The traffic generated by the emerging 5G service in India needs quick and real-time processing as the internet speed with the 5G technology is faster and has low latency thus it is most appropriate for the data to be processed nearer to the end consumers. This is because the processing of data can be done locally at edge data centers in small towns to minimize latency.
Edge data centers placed in smaller towns can handle local data traffic more efficiently. This helps in providing seamless services for applications like gaming, virtual reality, and smart devices. With 5G spreading across India, edge data centers will be a key part of improving the quality of services for both urban and rural users.
Decentralization of India’s Digital Infrastructure
Expanding data centers to smaller towns also helps to decentralize India’s digital infrastructure. Today, most data centers are located in large cities, increasing pressure on such regions. This means that depending on the capacity of a given data center, such developments should be spread all over smaller towns to minimize pressure on metropolitan areas.
It also assists in the enhancement of general data handling as well as the quality of the service delivery system. Other benefits that are evident, especially in the smaller towns that house the data centers, include infrastructure developments and employment opportunities. This will increase the growth in technological development of the regional economy, increasing the competitiveness of these regions in the global economy.
Government Support for Digital Infrastructure Development
There are already some realized programs like Digital India, under which the Indian government is warming up the wheel of digital advancement. These policies will contribute to the enhancement of better Internet connectivity, improved infrastructures, and available technologies in the country. In addition to this, the government of Singapore is also encouraging more companies to establish data centers in the country’s second- and third-tier cities, thus giving the industry a more congenial climate for growth.
Government support not only helps with funding but also improves connectivity and accessibility in less-developed areas. With initiatives to improve infrastructure, like better roads and energy supply, data centers in smaller towns are becoming more viable. The government’s backing ensures that smaller towns are equipped to handle the challenges of growing digital needs.
