Data Center

How Colocation Data Centers are Revolutionising India’s IT Infrastructure

Rohan Sheth

May 29, 2024

4 Min Read


India’s data center market is booming, driven by factors like increasing internet usage and digitalization, growth of cloud services and OTT platforms and various government initiatives. According to Mordor Intelligence, the size of the India Data Center Market is projected to be approximately 2.01 thousand MW in 2024, with an anticipated expansion to 4.77 thousand MW by 2029. According to industry reports, the data center capacity is projected to double by 2024, exceeding 1 GW.

Colocation: A Shared Success Story

In a colocation data center, businesses lease space to house their IT equipment, leveraging the data center provider’s infrastructure, security systems, and connectivity options. This model offers a multitude of benefits for businesses of all sizes:

1. Cost-Effectiveness: Colocation eliminates the hefty upfront capital expenditure required to build and maintain a private data center. Businesses can benefit from economies of scale by sharing infrastructure costs with other tenants.

2. Scalability and Flexibility: Colocation data centers allow businesses to easily scale their IT resources up or down as their needs evolve. This eliminates the burden of managing capacity limitations in a private data center.

3. Security and Reliability: Colocation providers invest heavily in advanced security measures, redundant power supplies, and robust cooling systems to ensure the highest levels of uptime and data security.

4. Enhanced Performance: Colocation data centers are strategically located with access to high-bandwidth connectivity, ensuring low latency and seamless data transmission.

Revolutionising Industries

The impact of colocation data centers extends far beyond cost savings. Here’s a glimpse into how colocation is transforming specific industries:

1. Cloud Providers: Colocation data centers enable public cloud providers to offer reliable and scalable cloud services with high availability and performance, catering to the growing demand for cloud-based solutions.

2. OTT Platforms: Colocation data centers offer the necessary infrastructure and connectivity to support the ever-increasing demands of Over-the-Top (OTT) platforms. Strategic location ensures low-latency access for end-users, optimising content delivery and user experience.

3. AI and Machine Learning (AI/ML): Colocation data centers provide the high-performance computing power and reliable storage needed to train and run complex AI/ML models, accelerating innovation across various industries, from drug discovery in healthcare to personalised recommendations in e-commerce.

4. Public Sector: Colocation data centers empower government agencies to leverage advanced data analytics for initiatives like smart cities, intelligent transportation systems, and citizen service delivery. Secure and scalable colocation infrastructure enables real-time data processing and analysis, leading to better decision-making and improved public services.

The Road Ahead

As data centers in India  continuee to evolve, colocation is poised to play an even more significant role. Here are some key trends to watch:

1. Focus on Sustainability: With growing concerns about environmental impact, data center providers are increasingly focusing on sustainable practices. This includes utilizing renewable energy sources and adopting energy-efficient cooling technologies.

2. DC Emergence in Tier-II and Tier-III cities: The data center growth story is not limited to metros. Tier-II and Tier-III cities are emerging as attractive colocation destinations due to lower land costs and access to talent pools.

3. Rise of Edge Data Centers: The growing demand for low-latency applications and data processing at the network’s edge will be met by an accelerated deployment of edge data centers in strategic locations across India. This will bring computing resources closer to users and devices, further enhancing performance and user experience.

4. Hybrid Colocation: As businesses embrace hybrid cloud models, colocation providers will offer comprehensive solutions that integrate on-premise infrastructure with colocation services and cloud connectivity.

Colocation data centers are not just transforming India’s IT infrastructure; they are accelerating the nation’s digital transformation journey. By providing businesses with secure, scalable, and cost-effective IT solutions, colocation is empowering them to compete in the global digital marketplace and unlock the full potential of data-driven innovation. As India’s data needs continue to surge, colocation data centers are well-positioned to remain at the forefront of this digital revolution.

Top enterprises entrust their essential IT infrastructure to Yotta’s hyperscale data centers. Yotta is equipped with multi-layer security, redundant internet networks, and seamless cloud connectivity, and provides an extensive array of supplementary support services tailored to accommodate diverse business operations. Additionally, Yotta’s comprehensive IT security suite safeguards your systems from a range of threats, including intrusion detection, DDoS attacks, and privileged access misuse. Yotta offers a comprehensive solution to empower your business in the digital age.

Rohan Sheth

Head of Colocation & Data Center Services

With over 17 years of extensive experience in the real estate and data center industry, Rohan has been instrumental in driving key projects including large-scale colocation data center facilities. He possesses deep expertise in land acquisition, construction, commercial real estate and contract management among other critical areas of end-to-end development of hyperscale data center parks and built-to-suit data center facilities across India. At Yotta, Rohan spearheads the data center build and colocation services business with a focus on expanding Yotta’s pan-India data center footprint.


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