India’s data centre journey in an AI-powered world

With data volumes skyrocketing every 18 to 24 months, the foundations of how we process, store, and manage information are under pressure. Amid this whirlwind of constant change, data centres are rapidly evolving, fuelled by artificial intelligence (AI), a push for decentralisation, and a growing demand for sustainable practices.

As we move towards a future that prioritizes data, the unification of AI, hybrid cloud, and edge computing is redefining how Indian data centres are designed and function. This shift goes beyond just technology; it reflects larger changes in what businesses prioritise, how public infrastructure is developed, and our collective responsibility to the environment.

A new operational paradigm

AI has moved beyond being just a buzzword; it’s now a key player in the operation of modern data centres. These AI-powered facilities leverage predictive analytics, machine learning, and automation to enhance energy efficiency, avert failures, and manage workloads in a smarter way.

A recent study by Credence Research reveals that AI-powered predictive maintenance is revolutionizing the data centre landscape in India. By predicting equipment failures, it helps minimise downtime and allows for timely, cost-effective solutions.

Globally, platforms like Meta’s AIOps have shown that AI can forecast hardware failures with over 90% accuracy, slashing unplanned downtime by as much as 65%. In India, where maintaining uptime is vital for everything from banking to public services, AI-enhanced monitoring and automation are becoming essential rather than just optional.

Building for scale and agility

According to JLL, the data centre (DC) industry in India is set to witness remarkable growth, with projections of adding 791 MW capacity by 2026. Traditional data centres that are large and tied to specific locations can't keep up with the rapid pace and scale of deployment we need today. That's where modular designs come into play. These modular setups enable facilities to be constructed more quickly, scaled as needed, and tailored to adapt to shifting workloads. For upcoming cities like Pune, Kochi, and Jaipur, where demand is on the rise, but resources are limited, modular construction offers a strong solution. Reports show that modular deployments can even reduce time-to-market and operating costs throughout the data centre's lifecycle. In a market where flexibility and cost-effectiveness are essential, this approach shows great potential.

The hybrid cloud conundrum

The hybrid cloud model—integrating public cloud, private infrastructure, and edge networks —is rapidly becoming the go-to architecture for businesses in India.  Nearly half of large Indian enterprises are now operating in hybrid environments, aiming to combine the flexibility of the cloud with the security of on-premises systems. For data centres, this model introduces a new level of complexity. Facilities now need to handle highly dynamic workloads, ensure low-latency connections across various environments, and maintain smooth data governance. This transition is pushing traditional data centre design to adapt, making flexibility the key focus in infrastructure planning.

Edge and the urban-rural digital divide

As 5G, IoT, and smart city initiatives continue to grow, edge data centres are becoming essential for quicker, localised data processing. The focus is shifting away from major hubs like Mumbai and Bengaluru, with Tier II and III cities such as Indore, Surat, and Bhubaneshwar stepping into the spotlight as important players. This edge infrastructure is set to play a crucial role in India's digital evolution, allowing more data to be processed right where users are.

Sustainability no longer optional

Data centres currently account for about 2% of the world's electricity consumption, and that figure is expected to double by 2030. In India, where energy prices are on the rise and climate goals are becoming stricter, sustainability has become a top priority. According to a report, the India Green Data Centre Market is anticipated to soar from $1.62 billion in 2024 to $7.64 billion by 2032, growing at a remarkable CAGR of 21.38%.

Certifications like LEED and IGBC are becoming the norm, and operators are increasingly adopting renewable energy sources, liquid cooling systems, and AI-driven energy optimisation techniques. Enabling this transformation means offering efficient power distribution, modular designs, and smart monitoring solutions that help reduce energy consumption while maintaining uptime.

Sustainability has evolved beyond mere compliance; it’s now a fundamental aspect of resilience and long-term value.

Reimagining India’s data infrastructure

India's journey in the data centre landscape is really taking off. With digital services fuelling growth, the infrastructure needs to keep pace—quickly, sustainably, and intelligently. The next decade won't just hinge on the sheer amount of data we handle, but on how well we manage it in an efficient and eco-friendly way. AI automation, modular energy solutions, and edge computing will be key. Organisations are stepping up to make this vision a reality, focussing on innovative, energy-efficient, and scalable technologies that empower everyone involved to create resilient and sustainable digital ecosystems.

Now is the perfect moment to rethink and reshape the backbone of India's digital infrastructure with a clear sense of purpose.

Author is Vice President, APAC, Data Centre-White Space, Legrand Data Centre Solutions. Views are personal.