As per a report by JM Financial, India may become a favored data center hub for the whole region, as the need for data centres is clearly increasing. A vast online user population producing an abundance of data, the government's push for data localization, and artificial intelligence (AI) are notable structural tailwinds.

According to the report, India has a notably small share of data centers (DCs) - producing 20% of the world’s data while possessing only 5.5% of global DC capacity - and the slower-than-anticipated increase in capacity previously has worsened the demand-supply imbalance, leading to a cyclical rise in DC capacity development.

The report also states that its bottom-up analysis indicates that India's Colocation (colo) data centre capacity is projected to reach 1.35GW in 2024, representing a 38% increase compared to the previous year. The report indicates that spending on cloud infrastructure (servers, etc.) might reach another $60 billion.

A data center is a tangible facility that companies utilize to store their essential applications and data. The design of a data center is founded on a network of computational and storage assets that facilitate the provision of shared applications and information.

The essential elements of a data centre design consist of routers, switches, firewalls, storage devices, servers, and application delivery controllers.