Digital transformation, e-government, data localization among key reasons for growth of DCs in India: Techno DC

Techno Data Center, a TEECL company, is building data centres in India to meet the data and computing needs of a growing Digital India. The company aims to play a pivotal role in shaping the digital infrastructure of the future. It has a vision to build DCs (of 250MW) across India by FY 2030 with an investment of USD 1 billion.

Techno DC is building a data center at SIPCOT, IT Park, Siruseri (Chennai), Tamil Nadu. The data center is being built over 20,000 square meters of built-up area. It will be Tier-III, compliant with 99.999% uptime and multiple-layer security configuration. The company has also identified Kolkata and Mumbai for its next data center construction projects.

Techno DC leverages its parent company’s 60-year expertise in land acquisition, engineering, procurement and construction (EPC) to cater to the rising demand for facilities in India that can house high-performance computing hardware for uninterrupted on-demand access to processing power and data storage.

Ankit Saraiya, Director, Techno Electronic & Engineering Co. Ltd (TEECL), tells us more. Excerptsf from an interview:

DQ: How do you see the current demand for data centers in India?

Ankit Saraiya: The data center market in India is expanding rapidly due to the emergence of cloud services, over-the-top (OTT) platforms, social media, gaming, and government initiatives promoting digital transformation across multiple industries.

The market expanded by more than 48% during the previous three years, reaching 800 MW of installed capacity in 2022. This growth trend is expected to continue with the introduction of 5G and data localization. According to CRISIL's projections, India will likely build 890–900 MW of capacity between 2023 and 2025, resulting in a market value of $10.09 billion by 2027.

Some key reasons for the increasing demand for data centers in India are:

Digital transformation: The ongoing digital transformation across industries has led to exponential data generation and consumption growth. Businesses are increasingly adopting cloud-based services, big data analytics, IoT (Internet of Things), and other digital technologies, necessitating the need for robust data center infrastructure.

E-government initiatives: The Indian government has been actively promoting e-governance, and digital services, leading to an increased demand for data centers to support these initiatives.

Data localization requirements: Regulatory requirements and data privacy concerns have prompted companies to invest in local data centers to ensure data sovereignty and compliance with Indian data protection laws.

Outsourcing and managed services: Many businesses, including multinational corporations, outsource their IT infrastructure and data center operations to third-party providers. This has created a colocation and managed data center services market in India.

Start-up ecosystem: India has a thriving start-up ecosystem, and many of these emerging companies require data center services to support their growth and innovation.

In response to this increasing demand, global and domestic data center providers have been expanding their presence in India. Major cities like Mumbai, Chennai, Bengaluru, and Hyderabad have become data center hubs. The Indian government is also taking steps to facilitate the growth of the data center industry by introducing policies and incentives to attract investment in this sector.

DQ: How is Techno DC best positioned in building DC infrastructure in India, given that parent company TEECL’s expertise in Engineering, Procurement, and Construction (EPC)?

Ankit Saraiya: Techno DC, a subsidiary of Techno Electric & Engineering Co. Ltd (TEECL), is investing $1 billion by FY 2030 to establish 250 MW capacity data centers across India, including a 24MW capacity facility in Chennai. With a proven track record, deep market knowledge, strong supplier network, and culture of innovation, Techno DC is well-equipped to deliver high-quality DC infrastructure projects that meet the needs of its clients.

TEECL has a proven track record of delivering high-quality EPC services across various industries, including power, water, and transportation. This experience translates well to building DC infrastructure, which requires similar skills and capabilities.

TEECL deeply understands the Indian market and regulatory environment, which is critical for success in building DC infrastructure in India. This knowledge allows Techno DC to navigate the complex landscape of permits, approvals, and regulations required for DC projects.

TEECL’s strong network of suppliers and partners enables Techno DC to source the best materials and equipment for DC infrastructure projects. This network also allows Techno DC to leverage economies of scale and negotiate favorable pricing for its clients.

TEECL has a culture of innovation and continuous improvement, which is essential for staying ahead of the curve in the fast-evolving world of DC infrastructure. Techno DC is committed to bringing the latest technologies and best practices to its clients, and TEECL's expertise in EPC is a key enabler of this goal.

DQ: Please elaborate on the upcoming hyper-density DC facility in Chennai.

Ankit Saraiya: We are constructing a data center G+4) building at SIPCOT, IT Park, Siruseri, Chennai, Tamil Nadu. This data center facility will be mission-critical and built for 99.999% uptime.

The state-of-the-art design will be modular and easily scalable without interruptions and with multiple-layer security configuration. Once completed, the data center will measure about 20,000 square meters of built-up area.

It is envisaged to have an IT load of approximately 23.4 MW. The design will be uptime Tier-III compliant. It has concurrently maintainable power distribution and cooling system design, aiming to achieve an average annualised PUE of 1.34 to 1.39.

The electrical power design will have the option of using a Battery Energy Storage System (BESS) during power failure to extend the backup time up to 16 minutes with EOL anatomy. The BESS will be utilized for increasing battery backup to reduce the utilization of diesel generator (DG) sets to remain environmentally and socially responsible.

With the use of adiabatic cooling towers for air conditioning systems, up to 75% reduction in water consumption will be achieved in comparison to conventional cooling towers, achieving a WUE of 0.012 KL/KW and significant savings in power consumption compared to air cooled chiller systems.

We will also be targeting the LEED Platinum rating, with over 25% of the green cover within the data center premises.

DQ: What are your future DC infrastructure plans?

Ankit Saraiya: Techno is investing $1 billion by FY 2030 to establish 250 MW capacity data centers across India, including an under-construction 24MW capacity facility in Chennai, and investing heavily in data center infrastructure across India, focusing on sustainability and automation technologies. We plan to leverage renewable energy sources to reduce the carbon footprint of our data centers.