• India creates 20% of global digital data but has under 2% of data center capacity, exposing a major gap. Data centers are essential for storing and processing data, powering digital services like cloud, AI, and e-commerce.
  • Local data centers are key for India’s economy, security, and jobs. With huge user bases on apps, India must store data locally to meet legal needs, attract $400 billion investment by 2030, and generate millions of jobs.
  • Major challenges include high costs, power issues, and trade risks. Strict localization may raise costs, reduce competition, and spark global trade disputes.
  • Environmental and cyber risks are concerns. Data centers use a lot of electricity and water, raising sustainability and security issues.

India can grow its data center ecosystem through incentives, cheap power, better connectivity, cooler city zones, and tech training programs.