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What are Data Centres?

What are Data Centres

About Data Centres

  • A data centre is a specialised facility that houses computing servers, storage systems, networking equipment and associated infrastructure to store, process and manage digital data.
  • It provides the technological foundation for cloud computing, online banking, e-governance, digital payments, artificial intelligence and other digital services.
  • Data centres require reliable electricity, cooling systems, high-speed connectivity and robust physical and cybersecurity measures.
  • They may be operated by government agencies, private companies or specialised service providers.

Key Components of a Data Centre

  • Servers: Process data and run applications.
  • Storage Systems: Store digital information, databases and files.
  • Networking Equipment: Enables communication between servers, users and external networks.
  • Cooling Systems: Prevent overheating and maintain suitable operating temperatures.
  • Power Infrastructure: Includes uninterrupted power supplies, backup generators and other systems to ensure continuous operation.
  • Security Systems: Protect facilities and information against unauthorised access and cyber threats.

Types of Data Centres

  • Enterprise Data Centres: Owned and operated by organisations for their own computing requirements.
  • Colocation Data Centres: Provide physical space, power, cooling and connectivity for customers’ servers and equipment.
  • Hyperscale Data Centres: Large-scale facilities designed to support extensive computing and storage requirements, particularly those of major cloud service providers.
  • Cloud Data Centres: Provide computing and storage resources through cloud platforms, often using virtualised infrastructure.
  • Edge Data Centres: Smaller facilities located closer to end users or devices to reduce latency and improve response times.

Status of Data Centres in India

  • India’s installed data-centre power capacity increased from approximately 375 MW in 2020 to 1.57 GW in August 2026.
  • The capacity is projected to reach nearly 8 GW by 2030, reflecting growing demand for digital infrastructure.
  • The National Informatics Centre (NIC) has established National Data Centres at Delhi, Pune, Hyderabad and Bhubaneswar, along with smaller data centres in state capitals.
  • These facilities support government websites, portals and e-governance applications.

Government Initiatives and Policy Support

1. Infrastructure Status
  • Granted in 2022 to data centres with a minimum 5 MW IT load under the Harmonised Master List of Infrastructure.
  • Facilitates infrastructure financing and long-term investment.
2. MeghRaj (GI Cloud)
  • Government initiative to enhance e-governance delivery through the efficient use of cloud infrastructure.
3. IndiaAI Mission
  • Strengthens India’s AI ecosystem and increases demand for AI computing and high-performance computing facilities.
4. Data Centre Evaluation Framework, 2026
  • Released by NITI Aayog’s Frontier Tech Hub in October 2026.
  • Helps state governments evaluate data-centre proposals using five pillars:
    1. Power and Energy
    2. Water and Cooling
    3. Siting and Environmental Sustainability
    4. Economic and Strategic Value
    5. Policy, Governance and Implementation
Significance of Data Centres
  • Digital Governance: Support online government services and digital public infrastructure.
  • Economic Growth: Attract domestic and foreign investment and create employment opportunities.
  • AI Development: Provide computing power and storage required for AI applications and large-scale data processing.
  • Cloud Computing: Enable the delivery of computing resources and software services over networks.
  • Data Security and Resilience: Well-designed facilities support data protection, backup and disaster recovery.
  • Digital Sovereignty: Domestic infrastructure can strengthen India’s capacity to store and process strategically important data within the country.
Challenges Associated with Data Centres
  • High Energy Consumption: Servers and cooling systems require substantial and reliable electricity.
  • Water Consumption: Some cooling technologies require significant quantities of water.
  • Environmental Impact: Dependence on fossil-fuel-based electricity can increase greenhouse gas emissions.
  • Land and Infrastructure Requirements: Large facilities require suitable land, power infrastructure and reliable telecommunications connectivity.
  • Cybersecurity Risks: Data centres may be targets for cyberattacks and unauthorised access.
  • Regional Resource Pressure: Concentrated development may put pressure on local electricity grids and water resources.
Conclusion

Data centres are essential infrastructure for India’s digital economy, supporting e-governance, cloud computing and artificial intelligence. Their sustainable expansion requires reliable energy, efficient cooling, robust cybersecurity and careful location planning.

This concept has been mentioned in the following article:

Cloud Ecosystem in India