Latest news with #CtrlSDatacentres
Time of India
4 days ago
- Business
- Time of India
A compelling economic logic is leading India's big data push away from major coastal centres, deep into the inlands
India's big data push is unfolding in an unconventional way, with more and more companies deviating from the tried-and-tested global playbook on data centres business, ToI reported on May 28. Most new players are setting up their data businesses inland rather than on major, established coastal hubs such as Mumbai and Chennai, ToI's report (by Akhil George) said. Narendra Sen, at the helm of RackBank, a data centre firm based in Indore, oversees a substantial 10-megawatt facility situated on the periphery of Madhya Pradesh's capital. Additionally, he is in the process of developing two more data centres, with one of them located in Raipur, and has also acquired land for a fourth site. Rather than pursuing the bustling markets of Mumbai's eastern coastline or Chennai's shores—both of which are well-known for being landing points for submarine cables that support the global internet—Sen focused on the affordability of land. 'In Indore, we purchased land for approximately 30 lakh an acre,' Sen told ToI. 'In contrast, a comparable plot in Mumbai approaches 30 crore. If you invest heavily, you must also sell at a high price. Indian startups cannot sustain that.' The availability of low-cost land is just the initial step in Sen's mission for affordability. Since energy costs represent the largest expense for data centre operators, RackBank has successfully negotiated a state subsidy that reduces its electricity tariff to around 6 per kilowatt-hour, which is less than half of what is charged in Mumbai. 'We believe we can operate at 40% lower costs than a tier-one data centre, while still adhering to the Uptime Tier IV standards, which signify the utmost reliability in data centres,' he said. Unconventional approach, but a sound one Sen's approach—positioning capacity in areas with ample land and power rather than in regions where submarine cables are installed—is swiftly gaining traction in the industry. Vipul Kumar, the vice-president for edge and network at CtrlS Datacentres, acknowledges the clear shift in momentum. 'We have already launched edge data centre operations in Patna and Lucknow and are broadening our reach into cities like Ahmedabad, Bhubaneswar, Guwahati, Bhopal, Jaipur, and Nagpur,' he states. Live Events For Kumar, the reasoning behind this shift is both strategic and economic. He asserts that decentralizing data centres is crucial for India's digital advancement. 'Our facilities in these emerging cities are specifically designed to provide low latency, meet data localization standards, and offer cost-effective solutions,' he explains. Ashish Arora, the CEO of Nxtra, a subsidiary of Airtel, emphasizes that with the increasing demands from over-the-top (OTT) services and content delivery networks for fast and efficient content distribution, edge data centre networks have become essential. The company currently operates over 120 edge facilities across more than 65 cities, in addition to 14 hyperscale data centres, ensuring uninterrupted streaming capabilities even in smaller urban areas. Fintech platform Infibeam Avenues is banking on a network of smaller facilities for its future. Chairman Vishal Mehta indicates that they are planning to establish a series of 1 to 2-megawatt data centres in at least ten cities, with each facility costing between 20-50 crore. He believes that this decentralized model not only mitigates risk but also supports low-latency AI operations and can break even within a two-year timeframe. Mehta further notes that this inland shift is transforming the landscape of corporate real estate. 'Global Capability Centres (GCCs), which were once concentrated in major metropolitan areas, are increasingly exploring tier-2 and tier-3 cities. The combination of advanced digital infrastructure, cost advantages, and available talent is turning cities like Gandhinagar, Kochi, and Jaipur into hubs of innovation,' he comments. Compelling economic logic As previously highlighted, the economic advantages of the heartland are compelling. Land prices in regions such as Vidarbha or Bundelkhand are a fraction of those in Mumbai; energy is more affordable and, importantly, more readily available. Latency also plays a crucial role in this transition. A commonly accepted guideline suggests that one millisecond of round-trip delay is equivalent to approximately 100 miles of fibre. An Indore-based server farm is positioned almost equally between Delhi, Mumbai, Hyderabad, and Ahmedabad, allowing it to reach half of India's population in under 10 milliseconds. 'For a streaming service or a payment gateway, that level of latency is adequate,' Sen remarks. AI serves as the final driving force behind this shift. Training a large language model can consume more energy than what a thousand households in India would use in a year and requires meticulously coordinated GPUs. 'AI represents a completely different battleground,' Sen observes. 'The United States is in the lead, China is following closely, and India must establish its own sovereign computing infrastructure if we wish to remain competitive.' RackBank intends to implement Nvidia's upcoming Blackwell chips within the next six months and promote a sovereign 'supercloud' for Indian developers. CtrlS is integrating hybrid renewable energy sources, Nxtra is experimenting with fuel-cell technology, and Infibeam's facilities are designed to accommodate phased GPU upgrades as demand increases. Collectively, these initiatives could serve as models for rapidly developing regions in places like Africa and Latin America. 'If computing resources remain expensive, only large corporations will be able to innovate,' Sen argues. 'By providing affordable GPUs in tier-two cities, even a college student could refine a healthcare model using local data. This approach is how we can uncover the UPI or Aadhaar equivalents for the AI era.' He believes this principle is applicable to many nations globally. Challenges still huge Nevertheless, the trailblazers in this sector do not underestimate the challenges ahead. Issues like reliable grid power, fibre backhaul, and the availability of skilled technicians remain ongoing concerns. 'The reliability of power infrastructure continues to be a major issue in various locations,' Kumar concedes, highlighting the necessity for significant investments in redundancy. Mehta echoes this sentiment, noting that many tier-2 areas still lack the grid stability and integration of renewable resources required for large-scale data centre operations. However, technological innovation is aiding in bridging the reliability gap. RackBank's pre-engineered, single-story structures can be constructed within six months—one-third of the time it would take to build a vertical city centre tower—and the company's patented immersion cooling tanks can reduce energy consumption for cooling by 60%. Similarly, CtrlS and Nxtra are adopting modular strategies; Infibeam distributes its IT load across several micro-grids to eliminate single points of failure.
Time of India
4 days ago
- Business
- Time of India
India's data centre push inland is a template for Global South
Photo/Agencies Narendra Sen has a humble origin story. His family comes from a village near Indore. They moved to the city in 1997 and everyone had to work, so Sen started a cyber-cafe. He slowly expanded into hosting servers. Today, the founder of Indore-based data centre company RackBank presides over a 10-megawatt facility on the outskirts of Madhya Pradesh's capital, with two more data centres under construction – one of them in Raipur. He's also secured land for a fourth site. Sen did not chase Mumbai's eastern seaboard or Chennai's coastlines – both popular because they are landing sites for submarine cables that are the backbone of our global internet. Instead he chased land prices. 'In Indore we paid roughly 30 lakh an acre,' Sen notes. 'A similar plot in Mumbai is nudging 30 crore. If you buy expensive, you have to sell expensive. India's startups cannot afford that.' Cheap land is only the first link in Sen's affordability crusade. Because power is the single largest operating cost for a data centre provider, RackBank negotiated a state subsidy that cuts its tariff to around 6 per kilowatt-hour – less than half the prevailing rate in Mumbai. 'We reckon we can run 40% cheaper than a tier-one data centre yet meet the same Uptime Tier IV standards (the highest level of data centre reliability),' he insists. 'That is what will democratise compute for colleges, fintechs and AI developers who simply cannot pay Western hyperscale prices.' The economics matter because India is racing into an era in which every AI chatbot, logistics algorithm and streaming platform is underpinned by specialised silicon – and that silicon is ravenous. While a conventional rack might draw 10 kW, Sen's next Indore data centre is being designed for 80-200 kW per rack, cooled by direct-tochip liquid loops and full-immersion baths built in-house. 'General-purpose centres are yesterday's technology,' he says. 'Accelerated computing needs different architecture, and it can be done just as safely in central India as on the coast. AI can live anywhere if the power and cooling are right.' A NATIONAL RETHINK Sen's philosophy – put capacity where land and electrons are plentiful rather than where submarine cables land – is rapidly becoming industry orthodoxy. Vipul Kumar , vice-president for edge and network at CtrlS Datacentres, says the momentum is unmistakable. 'We have already established edge data-centre facilities in Patna and Lucknow and are expanding into Ahmedabad, Bhubaneswar, Guwahati, Bhopal, Jaipur and Nagpur,' he says. For Kumar, the logic is strategic as well as economic. Decentralising data-centres, he says, is vital for India's digital future. 'Our facilities in these emerging cities are purpose-built to deliver low latency, comply with data-localisation requirements and offer cost-effective solutions,' he says. Ashish Arora, chief executive of Airtel-owned Nxtra, says that with the growing demand from OTT platforms and content delivery network providers for low-latency and high-performance content delivery, edge data-centre networks have become crucial. The company today has over 120 edge facilities across over 65 cities, complemented by 14 hyperscale data centres, to ensure seamless streaming experiences even in smaller towns. Fintech platform Infibeam Avenues is staking its future on a constellation of small facilities. Chairman Vishal Mehta says they are planning a network of 1to 2-megawatt data centres in at least ten cities, each costing 20-50 crore. The decentralised model, he says, spreads risk, supports low-latency AI workloads and can break even within 24 months. Mehta adds that the shift inland is already reshaping corporate real estate. 'Global capability centres (GCCs), once concentrated in major metros, are increasingly looking at tier-2 and tier-3 cities. The availability of advanced digital infrastructure, combined with cost savings and talent pools, is turning places such as Gandhinagar, Kochi and Jaipur into innovation hubs,' he says. ECONOMICS OF THE HEARTLAND As we said earlier, the economics of the heartland is compelling. Land in Vidarbha or Bundelkhand costs a fraction of Mumbai's asking price; power is cheaper and, crucially, more abundant. Latency is another driver. A widely used rule of thumb equates one millisecond of round-trip delay to roughly 100 miles of fibre. A server farm in Indore sits almost equidistant from Delhi, Mumbai, Hyderabad and Ahmedabad – meaning half the population can be reached in under 10 ms. 'For a streaming service or a payment gateway that is good enough,' Sen says. The final catalyst is AI. Training a large language model can devour more electricity than a thousand Indian homes use in a year and demands carefully choreographed GPUs. 'AI is already a different war,' Sen says. 'America leads, China follows, and India must create its own sovereign compute layer if we want to stay in the game.' RackBank plans to deploy Nvidia's forthcoming Blackwell chips within six months and market a sovereign 'supercloud' to Indian developers. CtrlS is integrating renewableenergy hybrids; Nxtra is piloting fuel-cells; Infibeam's pods are designed for phased GPU upgrades as demand grows. Collectively these experiments could become templates for fastgrowing regions from Africa to Latin America. 'If compute stays expensive, only big corporates innovate,' Sen argues. 'Put affordable GPUs in tier-two cities and a college kid can fine-tune a healthcare model on local data. That is how you discover the UPI or Aadhaar of the AI era.' And this, he argues, applies to many countries around the world. DEALING WITH POWER RELIABILITY None of the pioneers underestimate the obstacles. Reliable grid power, fibre backhaul and skilled technicians are perennial headaches. 'Power infrastructure reliability remains a primary concern in many locations,' Kumar admits, noting the need for hefty investments in redundancy. Mehta flags the same issue: 'Many tier-2 regions still lack the grid stability and renewable integration needed to support large-scale data-centre operations.' Yet, technical ingenuity is helping to close the credibility gap. RackBank's pre-engineered, single-storey sheds can be assembled in six months – onethird the time a vertical citycentre tower might take – and its patented immersion tanks can slash cooling power by 60%. CtrlS and Nxtra are pursuing similar modular playbooks; Infibeam distributes its IT load across multiple micro-grids to avoid single points of failure. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
