Summary:

India's edge data centre capacity is predicted to quadruple by 2027, reaching 200-210 MW from 60-70 MW in 2024, owing to increased data traffic and real-time processing demands. Unlike centralised centres, edge facilities are decentralised and closer to users, allowing for low-latency processing. Edge centres account for 10% of the 50 GW total capacity worldwide, with the United States dominating with 44%. They now account for only 5% of the population in India, showing significant growth potential.

According to Anupama Reddy of ICRA, conventional and edge data centres would use a hub-andspoke approach to support industries such as healthcare, banking, manufacturing, agriculture, and military. Traditional centres will handle large-scale AI and cloud workloads, whilst edge centres will handle real-time, localised processing. High rollout costs, security threats, expertise shortages in smaller cities, and interoperability difficulties all pose challenges. With greater leasing charges projected, companies such as RailTel and telecom behemoths will fuel the growth of India's edge data capacity.

Source: IBEF

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