India’s edge data centre to triple by 2027 as demand grows

• Proliferation of emerging technologies underscores the increasing importance of edge computing in the nation’s digital infrastructure.

India’s edge data centre landscape is poised for remarkable growth, with capacities projected to triple from approximately 60-70 megawatts (MW) in 2024 to 200-210 MW by 2027.

The expansion, driven by the proliferation of emerging technologies, underscores the increasing importance of edge computing in the nation’s digital infrastructure.

Edge data centres, characterised by their smaller size and decentralized locations closer to end-users, differ fundamentally from traditional large, centralised data centres. These facilities enable real-time data processing with minimal latency, vital for applications requiring immediate responsiveness.

Currently, edge data centres constitute about 5 per cent of India’s total data centre capacity, a figure anticipated to rise to 8 per cent by 2027, reflecting their growing strategic role.

In India, traditional and edge data centres function as complementary pillars. While traditional data centres underpin large-scale computing, artificial intelligence, and cloud workloads, edge data centres facilitate localised, real-time services.

The synergistic relationship, often conceptualised as a hub-and-spoke model, is expected to enhance efficiencies across critical sectors including healthcare, banking, agriculture, defense, and manufacturing.

Despite these promising trends, challenges remain. Security vulnerabilities are heightened by the remote deployment of edge data centres, particularly in tier 2 and tier 3 cities.

Additionally, rapid technological advances threaten obsolescence, and there is a notable shortage of skilled professionals in less urbanised areas. Interoperability between edge and traditional data centres also poses operational challenges.

Globally, the United States leads in edge data centre capacity, holding over 44 per cent, followed by Europe, the Middle East, and Africa at 32 per cent, and the Asia Pacific region at 24 per cent.

India’s significant expansion within this global context signals its ambition to strengthen digital infrastructure and support an increasingly connected economy through advanced data processing capabilities at the network edge.