Indias edge data centre capacity projected to triple to 200-210 MW by 2027: ICRA

According to a recent report by ICRA, India's edge data centre capacity is projected to soar to between 200 and 210 Megawatts (MW) by 2027, a significant increase from the current 60 to 70 MW in 2024. This anticipated growth is largely attributed to the rapid advancement of emerging technologies. Edge data centres, unlike their traditional counterparts, are smaller and more decentralized, strategically located closer to end-users and devices. This proximity allows for real-time data processing with reduced latency, which is increasingly vital in today's data-driven landscape. As of December 2024, global data centre capacity—encompassing both traditional and cloud operations—is expected to reach around 50 Gigawatts (GW), with approximately 10% of that dedicated to edge facilities. In the realm of edge data centres, the United States currently holds over 44% of the global capacity, followed by the EMEA region at 32%, and the Asia Pacific region at 24%. India, still an emerging player in this market, has a mere 5% of its total data centre capacity allocated to edge solutions. When excluding capacity used for internal purposes by major operators, this figure drops to just 1%. Anupama Reddy, Vice President and Co-Group Head of Corporate Ratings at ICRA, emphasized that edge and traditional data centres serve as complementary elements of India's digital infrastructure. "As India’s cloud ecosystem continues to grow, traditional data centres will support large-scale computing and AI workloads, while edge data centres will enable localized services and real-time processing," Reddy noted. Looking ahead, both types of data centres are expected to collaborate within a hub-and-spoke model, enhancing operational efficiency across various sectors, including healthcare, banking, agriculture, defense, and manufacturing. However, the rise of edge data centres is not without its challenges. Issues such as security vulnerabilities due to remote setups, rapid technological advancements leading to potential obsolescence, a lack of skilled professionals in tier II and III cities, and compatibility with traditional data centres pose significant hurdles. Moreover, edge data centre rentals are anticipated to be higher than those of traditional facilities, as they primarily cater to retail customers, unlike the enterprise-focused traditional data centres. Despite the increased capital expenditure per MW for edge data centres, it is expected to be offset by the elevated rental prices. Industry leaders, including RailTel and telecom operators, are poised to spearhead the expansion of edge data centres in India.