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/FAQs/ How does digital transformation impact India’s data center real estate?

How does digital transformation impact India’s data center real estate?

Digital transformation—encompassing AI, ML, 5G, IoT, and cloud computing—is propelling India’s data center real estate to new heights. As more businesses move operations online, deploy cloud-based services, and utilize big data analytics, the need for secure and high-capacity server infrastructure has skyrocketed.

  • E-commerce & Fintech: Platforms handling massive transaction volumes require reliable data centers for real-time processing, fueling expansions in BFSI-friendly cities like Mumbai and Delhi-NCR.
  • AI & ML Adoption: Advanced computing workloads—such as natural language processing or image recognition—demand hyperscale facilities with robust cooling and backup systems.
  • OTT & Gaming: With more Indians streaming content, data centers must handle low-latency demands for video-on-demand, online gaming, and live sports.
  • Data Localization: Proposed privacy regulations require storing personal and financial data within India, encouraging global tech giants to build or lease large local data center spaces.
  • 5G Rollout: Ultra-fast mobile networks generate enormous data loads, necessitating edge computing nodes closer to users, leading to new smaller developments across tier-2 and tier-3 cities.

Overall, digital transformation increases complexity and workloads across industries, making data center real estate a pivotal growth driver in India’s commercial sector.

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