We have seen a major increase in the demand for data centres across India in the post Covid-19 era.

Rajeev Sharma, Chief Strategy Officer, Mitsubishi Electric India What is the latest trend of the data centre market in India? The Indian data centres market is witnessing several prominent trends. There is a rapid increase in demand for cloud-based services driven by digital transformation, e-commerce, and adoption of emerging technologies like AI, ML, and IoT.

We have seen a major increase in the demand for data centres across India in the post Covid-19 era.
Rajeev Sharma-CSO-Mitsubishi Electric India

Rajeev Sharma,

Chief Strategy Officer, Mitsubishi Electric India

What is the latest trend of the data centre market in India?

The Indian data centres market is witnessing several prominent trends. There is a rapid increase in demand for cloud-based services driven by digital transformation, e-commerce, and adoption of emerging technologies like AI, ML, and IoT. This surge in demand is leading to a significant need for data centres infrastructure and services in the country.

Secondly, edge computing is gaining traction in India. With the proliferation of IoT devices and the need for real-time decision-making, businesses are deploying data centres at the edge to process data at a closer proximity to the source or end-user, reducing latency and improving response time.

Sustainability and energy efficiency have become significant considerations, with organizations focusing on reducing their carbon footprint. Green data centres that utilize renewable energy sources and implement energy-efficient infrastructure equipment are gaining popularity, aligning with India's commitment to sustainable development.

Data security and compliance are also top priorities as organizations aim to protect sensitive information. Advanced security protocols, physical access controls, and encryption techniques are being implemented in data centres to ensure data integrity and confidentiality.

Lastly, the Covid-19 pandemic has accelerated the adoption of remote work solutions, increasing the demand for data centres that support remote operations. Cloud-based infrastructure and collaboration tools are enabling seamless remote work environments, highlighting the need for reliable data centres in the Indian market to ensure uninterrupted connectivity and data accessibility.

 

How is the demand picking up? Which are the key demand drivers?

The digital revolution has increased the demand for data centres in the market, we have seen a major increase in the demand for data centres across India post the Covid-19 era. India foresees itself to be a global hub for data centres focused on cloud computing with robust growth of the segment in the near future. Since there is a significant economic rise and more adoption of digital technologies, there is a surge in demand for data centres in the market. The key demand drivers can be termed as: increased cloud computing adoption, acceleration of IoT devices in the market, data security and e-commerce growth, increasing demand of data and bandwidth capacity, government's initiatives like Digital India, reliance on remote working and operations, and secure data storage and processing.

Mitsubishi Electric with its reliable and state-of-the-art solutions support the growth of data centre infrastructure in India. The brand is coming forward by participating and organizing multiple Cloud and Data Centre convention events, conferences, infrastructure summits, etc. that are being held in Tier-1 cities of India. This gives a leading platform to the top industry leaders to expand their bandwidth and come out as an improved infrastructure provider as well as a major contributor for the growth of data centres across the nation.

 

What are the key challenges faced in setting up new data centres?

Since data centres require intricate and critical IT infrastructure; advance power, cooling, security, and robust connectivity would definitely be needed. There are many challenges faced when we talk about setting up new data centres.

One of the primary challenges is the significant upfront investment required for infrastructure and equipment. Data centres demand substantial capital for servers, networking components, cooling systems, and power backup solutions. Acquiring suitable land or facilities and obtaining necessary permits can also pose financial obstacles.

Advanced power and cooling are critical considerations as data centres consume significant energy and generate dense heat. Balancing power capacity, redundancy, and energy efficiency can pose challenges for such complicated infrastructural set up.

Construction and site challenges faced is the major factor that arises while shortlisting the location for a new data centre set-up. As per the requirement, the challenge is accommodating advanced IT infrastructure within the urban areas.

Establishing reliable network connectivity, complying with regulatory requirements, ensuring data security, maintaining a skilled workforce, environmental sustainability, implementation of disaster recovery and business continuity plans are other challenges faced in setting up new data centres. Strategic planning, expertise, state-of-the-art infrastructural solutions & equipment, and continuous adaptation to evolve industry standards & technologies can support in overcoming such challenges which can lead to a smooth set up for a new data centre. In the near future, Mitsubishi Electric India is strategizing and planning to meet such real time expectations and focus to become one stop solution for data centre Industry.

 

How does technology play a key role in data centres?

Technology is essential for data centres, providing the infrastructure for data processing, storage, and communication. Advanced hardware and networking technologies enable high-performance computing, rapid data retrieval, and seamless connectivity. Virtualization creates a virtual accessibility of physical resources like servers, storage and networks which can be accessed from anywhere. Cloud computing revolutionizes data centres by offering scalable and cost-effective services, computerized resources, and data storage. AI and ML enable automation, optimization, and predictive analytics, enhancing proactive maintenance and energy efficiency. Advanced servers, edge computing, computational fluid dynamics are some of the high-edge technologies that help in smooth management of data centres. Data centre management software and monitoring tools ensure efficient operations and proactive maintenance by providing real-time insights into performance and metrics. Technology enables efficient resource utilization, scalability, automation, and seamless connectivity, empowering businesses to leverage data and drive innovation in the digital age Mitsubishi Electric offers highly efficient electrical & mechanical product offering followed by robust monitoring and control systems which are innovative and technologically advanced. Looking at the increasing demand and rapid growth of this industry in India, we do our bit to offer numerous technologically advanced electrical, mechanical, and communication solutions that are majorly created to support data centre expansion and operations across the nation.

 

How are energy efficient technologies gaining traction in data centre facilities? What are the solutions offered?

Energy efficiency is the major area of key focus these days no matter which segment we talk about, energy-efficient technologies are gaining significant traction in data centre facilities as everyone very well realizes the importance of circular economy and reduced carbon footprints in today's era. Advance Data centres nowadays are equipped with an array of technical and IT elements which include servers, routers, switches, etc. that are backed with strong infrastructural support. With an aim to scale up India to become a global hub for data centres, Mitsubishi Electric is providing energy efficient solutions that can support secure the growth of India's data centre infrastructure.

Some of them are listed below:

IT Cooling and Comfort Cooling Systems: Mitsubishi Electric India and its group company Climaveneta India offers a complete solution from High Side to Low Side. From Chillers to Fan Walls, HPACs to PAHUs, RACs to VRFs and on board Hydronics. Also, comes with a plant manager/plant optimizer with Inbuilt redundancy including optimized and automatic buffer tank management systems. Inbuilt Hydronic Modules are also there which save valuable terrace space and execution time and energy.

Mag-Lev chillers offered contribute to 18% higher energy saving when compared to the screw chillers. Free cooling can provide as high as 27% saving in compressor energy, depending on the location and chilled water temperature.

Power Distribution System: Energy saving supporting devices help to reduce the total costs through energy visualization. Entire data centre optimization, smart grid and smart metering is achieved by accurately identifying the status of energy use which varies from floor to floor and room to room, and analyzing and parsing how it is used. Mitsubishi Electric has a full line-up of products to achieve this.

Furthermore, by utilizing the visualized information, a highly flexible meter reading system can be established.

Elevators: Regenerative Converter, Allocation Control – Energy saving Operation (ESO-W), Light Emitting Diodes, Auto-Shutdown of the Car Fan (CFO-A) and Automatic Shutdown of the car lights (CLO-A) are the advanced technologies that comes featured in the Mitsubishi Elevators that contribute to saving energy.

Monitoring and Control: SCADA is the most innovative software offered by Mitsubishi Electric which helps in facility management and delivers a high-level comprehensive supervisory system, including data collection, for iBMS.

Support to real-time and historical alarms allows users to not only supervise and be notified of the status of processes, but also to easily identify them at a glance by displaying multiple trend graphs and heat-mapping data sets. These functions contribute to improved user experience and energy savings.

Inverters: Power consumption can be reduced by adjusting the amount of airflow by controlling the rotation frequency inverter. Further energy savings can also be achieved with IE3 and IE4 compatible general-purpose motors (IM) and PM motors (PM) that incorporate permanent magnets into the rotors. Furthermore, with energy-saving monitors, it is possible to monitor the results of the energy saved and the status of the inverters through the network, allowing for greater centralized monitoring.

UPS Solutions: Uninterrupted power supply system form a critical component for data centre infrastructures. Understanding the reputation and financial risks associated with downtime in data centres, Mitsubishi Electric offers exquisitely designed UPS systems that can be integrated into data centres to provide consistent power even when the primary supply is affected while saving energy at the desirable levels.

What is your outlook on the market? What are your future plans?

Mitsubishi Electric is rigorously moving ahead towards the stellar growth in the data centre industry to make the country a hub for data centres all across. Our approach has majorly shifted in focus towards strengthening and optimizing the engineering team for timely execution and after sales service or maintenance. More inclination towards product engineering to drive the industry with new technically advanced solutions which can give highest efficiency level during its product life cycle. As per the Government of India digital initiative, more investment is foreseen in the data centre market; currently, the market value of data centres in India is $4.35 billion and this is expected to reach $10.09 billion by 2027. The projected growth is expected at CAGR of 16% for the next five years. Data centre market is expected to welcome huge business opportunities for next 10 years with many international and Indian companies doing major investment. The brand envisions to establish Mitsubishi Electric as a one stop solution for electrical & mechanical requirement of the data centre industry.

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