May 9, 2025
0 Data Center Data Centers

Why Data Centers Are Critical to India’s Digital Growth?

India is undergoing a digital revolution, and at the heart of this transformation lies one essential yet often overlooked engine—data centers. As smart devices multiply, cloud computing accelerates, and internet usage crosses 1.1 billion wireless subscribers, the demand for secure, scalable, and reliable data storage infrastructure has never been higher. From powering real-time transactions and AI workloads to enabling government e-governance services, data centers form the digital backbone that supports everything from fintech to online learning. With the rapid rollout of 5G, explosive growth in digital payments, and the rise of deep-tech start-ups, India is emerging as one of the world’s fastest-growing data center services markets—and the next few years will define its trajectory.

India’s Data Center Market Size and Growth Projections

The data center market in India is currently valued at INR 82 billion, with around 85,000 racks for co-location, and is projected to grow at a compound annual growth rate (CAGR) of 21.4% from fiscal year 2020 to fiscal year 2024. The market in the future is expected to grow at a CAGR of 19.7%, from INR 82 billion in fiscal year 2024 to INR 240 billion in fiscal year 2030. As of 31st March 2024, the total data center installed capacity in India is 1050 MW, and the total utilized capacity in India for data centers stands at 850 MW.

Market Segmentation for India’s Data Center Industry by Major Cities

As of 31st March 2024, India’s current data center capacity stands at 1,050 MW, with approximately 94% of this capacity concentrated in major cities. Among these cities are Mumbai and Chennai, which lead the sector. Mumbai alone accounts for 48% of India’s total data center capacity, supported by its strategic submarine landing stations, infrastructure for power and fiber optics, and significant demand from the banking, financial services, and BFSI sectors. Meanwhile, Delhi and Kolkata serve as the primary locations in North and East India, catering to regional enterprise demand, with Delhi anticipated as a significant player with substantial capacity additions on the horizon.

Along with this, data centers are experiencing significant growth as they expand into Tier-2 and Tier-3 cities, driven by advantages and increasing demand for digital infrastructure. Cities such as Nashik, Kochi, and Jaipur are becoming key players in this expansion. Leading companies like ESDS Software Solution Limited are actively pursuing opportunities to establish their presence in these smaller cities.

End-user Segmentation by Industry

The data center market is characterized by a diverse range of end-user sectors, with the Banking, Financial Services, and Insurance (BFSI) sector leading the way, accounting for 45% of total revenues. Enterprises follow closely, representing 35% of the market, driven by their increasing reliance on cloud services and digital transformation initiatives. The government sector contributes 15%, focusing on e-governance and secure data management, while other sectors collectively make up the remaining 5%. This distribution highlights the varying needs and priorities of different industries in leveraging data center capabilities to support their operations. Players with a well-diversified presence across multiple industry segments have already built a strong foundation in the Indian data center and cloud market.

Types of Data Centers

Below is the list of data centers as shown below:

  • Managed Data Centers—Combines co-location services with managed IT support, allowing businesses to rent space for servers and outsource infrastructure management to specialized vendors. It helps businesses focus on core activities without IT management burdens.

Key Benefits:

  • Expert management of IT resources.
  • Flexible scalability
  • Focus on strategic initiatives
  • Reduced IT management burden
  • Colocation Data Centers—Provides physical space to house servers and networking equipment, offering power, cooling, security, and connectivity. This model allows businesses to share infrastructure costs while maintaining control over their hardware.

Key Benefits:

  • Enhanced security measures
  • Cost savings on infrastructure investments.
  • Improved interconnectivity with network providers.
  • Hyperscaler Data Centers—Large-scale facilities supporting data processing, computing, and storage services for major organizations.

Key Benefits:

  • Extreme scalability
  • Cost efficiency through economies of scale and performance infrastructure for rapid growth.

Conclusion

India’s growing digital economy relies on the strength and scalability of its data centers. From metro hubs to emerging Tier-2 cities, data centers are expanding infrastructure to support the surge in demand. Organizations like ESDS Software Solution Limited offer data center colocation data center services, allowing businesses to securely house their own IT infrastructure while benefiting from redundant power, cooling, and high-speed connectivity. This is ideal for businesses needing physical control over their hardware while leveraging a professional Data Center environment.

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Mar 18, 2025
0 Data Center Technology

How to Choose the Right Data Center Services Provider in 2025?

In 2025, the growing demand for the data center provider industry will still be expanding at an incredible rate. The worldwide data center provider market is anticipated to grow at a 15% CAGR through 2027, based on developments that are presently being built and those that are planned. This is our baseline prediction, with a 20% CAGR through 2027 as an upside possibility. Despite its fast rise, the industry faces several possibilities and problems.

New technology is opening up possibilities for wealth generation and long-term growth. Other major issues facing the industry include electricity shortages and rising demand that is outpacing supply. This paper looks at the significant problems that the global data center industry is currently facing and makes forecasts for the coming year.

Before diving into choosing the right data center providers, first let’s look at the key highlights that are going to be there in 2025 related to artificial intelligence and liquid cooling.

  1. Artificial Intelligence: AI is finding more and more uses in almost every industry. Several billions of dollars have been invested in AI during the past few years.
  2. Liquid Cooling: Liquid cooling will be a practical solution and a chance to boost asset value for current facilities moving to higher-density workloads.

Key Highlights:

  • In 2025, artificial intelligence (AI) will still be gaining traction. The data center sector is at the start of a revolutionary period, propelled by AI’s unrelenting development. Over the past few years, billions of dollars have been invested in AI, which has increased demand for data center infrastructure.
  • SMR announcements will pick up speed in 2025, and the total gigawatts will probably double. As the need for energy grows, nuclear power is becoming the go-to option. The industry is investigating both conventional large-scale nuclear power and small modular reactors (SMRs) since conventional electricity systems find it difficult to keep up.
  • It will be necessary to switch to liquid cooling in order to support GPU developments. Liquid cooling infrastructure has rapidly taken over as the standard installation in new projects. Liquid cooling will be a practical alternative for current facilities moving to higher density workloads, providing owners and investors with an opportunity to improve their assets.
  •  In 2025, $170 billion in assets will need to be secured for development or long-term funding. Development finance will offer investors a strong chance to get exposure to the industry, even though investment transaction volumes are only expected to slightly expand in 2025 because of large bid-ask spreads and a dearth of accessible products.

The capacity of data center providers worldwide is expected to increase by 15% annually, but this will not be enough to satisfy the rising demand.
2023–2027 data center capacity (gigawatts)

As businesses increase their data usage and rely on data center services to support their expansion, choosing the best data center provider can be difficult. Businesses of all sizes can choose from a variety of data centers, so choosing the right one requires considerable thought and confidence.

7 steps You Need to Consider While Choosing a Data Center Provider

Selecting the best data center provider is essential to guaranteeing the scalability, security, and dependability of your IT infrastructure. Here are some important factors to think about before choosing your choice.

  • Location

When selecting a data center provider, location is crucial for a number of reasons. First, think about how easy it is for your staff to get to the site, particularly for maintenance or equipment upgrades. Location-related delays or inefficiencies can be expensive. Additionally, assess the region’s susceptibility to earthquakes, tornadoes, floods, and hurricanes. Although data center providers typically take these hazards into consideration, it is advisable to confirm the facility’s readiness.

Lastly, we’ll go into greater detail about the network and customer ecosystems, but first we’ll make sure the data center has enough power and numerous fiber channels for connectivity.

  • Power Cooling

Because outages are expensive, it is essential to guarantee continuous electricity and efficient cooling systems. Implementing a multi-path configuration for redundancy is the ideal course of action, as it allows for seamless system replacement in the event of a failure.

For client equipment to operate at its best, data center server cooling is essential. This could entail cutting-edge methods like cold-aisle containment, free air cooling, and deep lake water cooling, among others.

  • Security Measures

Your business depends on your data. When hosting it somewhere else, be sure the supplier adheres to SOC 2, SSAE 18, and HIPAA laws and employs excellent security measures. The building should have strong physical security, which includes alarms, monitoring, access controls, and several levels of protection. To identify and notify you of any possible emergencies, sophisticated monitoring systems must be installed.

  • Scalability & Flexibility

Choose a service that can adapt to your changing needs in order to fulfill your short-term and long-term goals. While some data center providers give pre-made systems, others provide more adaptable and configurable choices.

Check if more resources, such as power, space, and connectivity, are available. Don’t let a provider who isn’t scalable restrict the possibility for expansion of your organization.

  • Cost

Find out how much power, cooling, and network connectivity will cost each time you host equipment at the colocation data center. Additionally, note any one-time infrastructure setup costs. Make sure that network connectivity and server power are covered by these fees.

Furthermore, for a cost, certain data center providers in India may provide additional services like equipment installation or remote hand help. Take into account the data center’s dependability and service quality while assessing expenses.

  • SLA, uptime, compliance and certifications

Assessing a potential data center partner’s demonstrated track record and committed service standards is essential. Although 99.99% uptime SLAs are provided by many data centers, others may go above and beyond. 

Verifying a data center’s providers dependability, security, and regulatory compliance requires independent audits and certifications, particularly for the government, financial services, and healthcare industries.

  • Customer Support

More than just more room and faster speeds should be provided by data centers. A first-rate facility has committed, knowledgeable support staff on hand around-the-clock to answer inquiries and fix problems.

Conclusion:

Choosing the right data center provider is a crucial decision that can significantly affect the success and expansion of your company, regardless of whether you’re just starting your search or switching from another provider. By considering elements like location, data center security, scalability, flexibility, dependability, network connectivity, on-site assistance, customer service, and SLAs, you can make decisions that will satisfy the demands of your organization and its long-term objectives.

ESDS is one of the leading data center management organizations in India that provides services to assist and safeguard your IT infrastructure while you search for the finest data center provider. You can rely on us to support the digital success of your company because we prioritize security, dependability, and scalability.

Ready to find the perfect data center provider for your business? Contact ESDS Software Solution today to explore our secure, scalable, and reliable data center solutions

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Feb 21, 2025
0 Data Centers

How to Prevent Data Center Fires: Lessons from the Biggest Incidents?

Datacenter fires, though relatively rare, can have catastrophic consequences. From endangering lives to causing millions in damages and prolonged downtime, these incidents underscore the importance of robust safety measures and disaster recovery plans. However, due to concerns about non-disclosure agreements (NDAs) and public relations (PR), many organizations are reluctant to share detailed reports about such incidents. This lack of transparency can hinder the industry’s ability to learn from past mistakes and implement preventive measures.

According to the Uptime Institute, high-profile data center outages caused by fires or fire suppression systems occurred between 2020 and early 2023. While fires account for a small percentage of data center incidents, their potential impact on business continuity and customer trust cannot be ignored.

Notable Data Center Fires: Key Takeaways

  1. Google Data Center Fire, Iowa (2022)
    An arc flash in a substation near Google’s Council Bluffs data center caused an explosion, injuring three workers. Although unrelated to the simultaneous outage of Google’s maps and search services, the incident highlighted the risks associated with electrical infrastructure.
  2. Evocative Data Center Fire, New Jersey (2023)
    A fire in the UPS area of Evocative’s Secaucus facility required a full power shutdown. Fortunately, no injuries were reported, but the incident disrupted services for many New York metro area companies.
  3. OVHcloud Data Center Fire, France (2021)
    A catastrophic fire destroyed one of OVHcloud’s Strasbourg data centers and damaged another. The incident underscored the importance of compartmentalization and redundant infrastructure to limit fire spread and ensure service continuity.
  4. SK Inc. C&C Fire, South Korea (2021)
    A fire at SK C&C’s data center disrupted Kakao Corporation’s services for hours, exposing gaps in its disaster recovery plan. The incident led to establishing a recurrence prevention committee to address vulnerabilities.
  5. Reliance Jio, India (2024)

Reliance, a large telecom company, Reliance Jio, had a significant network outage on Tuesday (September 17).

According to the outage monitoring website Downdetector, over 10,000 customers reported not receiving signals, experiencing issues with JioFiber, and accessing mobile internet.

Confirming the situation, a Jio representative told Reuters, “This morning, certain Jio users in Mumbai had trouble accessing smooth services due to minor technical difficulties. The issue has been rectified, and Jio’s seamless services are entirely restored. We apologize for the disruption to our subscribers.

Building Resilience: Preventing Data Center Fires

Datacenter fires can result from various causes, including arc flashes, faulty infrastructure, hardware failures, and human error. While some incidents are unavoidable, many can be prevented through proactive measures.

  • Infrastructure Safety: Regular inspections, maintenance, and upgrades of electrical and mechanical systems are critical. Compartmentalization can help contain fires and prevent them from spreading.
  • Compliance and Regulation: Stronger compliance standards, such as Colorado’s Federal Data Center Enhancement Act and Maryland’s Critical Infrastructure Streamlining Act, ensure infrastructure resilience.
  • Disaster Recovery Plans: A well-defined disaster recovery plan, including risk assessment, redundant infrastructure, and backup power generators, can minimize downtime and protect data.

The Role of ESDS in Ensuring Business Continuity

At ESDS, we understand the importance of safeguarding your data and ensuring uninterrupted operations. Our state-of-the-art data centers are designed with resilience in mind, incorporating advanced fire suppression systems, redundant power supplies, and robust disaster recovery protocols. We also offer comprehensive disaster recovery as a service (DRaaS) to help businesses quickly restore operations during a catastrophic event.

Staying Ahead of the Curve

Disaster recovery plans are not static documents but living frameworks that must evolve with your business and technology. Krista Shepard of Cologix aptly said, “It’s important to periodically update and refine disaster recovery plans as your business and technology evolve and to adapt to changing environmental and weather conditions.”

At ESDS, we are committed to helping businesses stay ahead of the curve by providing cutting-edge solutions and expert guidance. Whether you want to enhance your data center’s resilience or develop a comprehensive disaster recovery plan, we’ve got you covered.

Conclusion

Datacenter fires may be rare, but their potential impact is too significant to ignore. By learning from past incidents, investing in infrastructure safety, and implementing robust disaster recovery plans, businesses can protect their operations, safeguard their customers’ trust, and ensure long-term success.


ESDS delivers secure, scalable, and resilient data center solutions tailored to your business needs. From disaster recovery as a service (DRaaS) to advanced fire suppression systems, our cutting-edge technologies ensure your data is always protected. Partner with ESDS to build a future-proof infrastructure that guarantees business continuity, no matter what challenges arise.

Contact us today to learn how we can help you stay ahead in an ever-evolving digital landscape.

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Jan 13, 2025
0 Data Center

Data Center Cooling in 2025: Emerging Trends and Strategic Approaches for Efficiency

As we enter 2025, data center services are in a position to adopt various new cooling technologies and techniques. These range from quite mature and proven solutions to much more experimental ones. Yet, they are bound to influence data center cooling trends in 2025 as enterprises look for even more cost-effective and sustainable methods of cooling facilities.

Below are the key statistics for the Data center shown below:

Here are the six key data center cooling trends in the new year:

  • Rising Data Center Heat Challenges

The most critical data center services cooling trend impacting the sector in 2025 is increased demand for cooling systems. This is due primarily to the ongoing deployment of AI workloads, which tend to generate more heat than traditional applications.

In 2025 and beyond, finding ways to improve data center cooling won’t simply be about saving money or reducing carbon emissions. Ensuring facilities can accommodate AI without overheating will also become critical.

  • Increased Adoption of Liquid Cooling

One way to dissipate heat more effectively is to replace traditional air coolers with liquid cooling systems. These may include immersion cooling, which covers equipment in non-conductive liquid, an extremely efficient but costly cooling method, and direct-to-chip cooling, which transfers heat directly from chips.

Liquid cooling systems are generally much more expensive than traditional cooling solutions, and they can be challenging to retrofit into existing facilities. However, according to IDC, 22% of data centers already have liquid cooling systems. Expect that figure to grow in the new year as data center operators respond to contend with the added heat load of AI and leverage innovations designed to make liquid cooling more efficient and reliable, such as a novel propylene glycol-based direct-to-chip cooling fluid recently unveiled by Castor.

  • Low-Cost Cooling System Improvements

Another way to improve the effectiveness of data center cooling is to optimize the chilled-air systems many facilities already have. Simple, inexpensive improvements like optimizing the positioning of fans or sealing off space that doesn’t need to be cooled to avoid blowing air into it can deliver essential boosts in cooling system capabilities.

Measures like these won’t typically result in triple-digit performance improvements. Still, they may boost cooling capacity by 10-20%—which could be enough to allow facilities to support heat-intensive AI workloads without requiring brand-new cooling systems. We expect these improvements to become another data center cooling trend in the new year.

  • Creative Heat Reuse Strategies

In addition to the need to dissipate more heat, part of the pressure data center operators face on the cooling front currently centers on sustainability. To reduce overall carbon emissions, facilities must reduce the energy they waste through heat dissipation.

Newer, more efficient cooling technologies (such as liquid cooling, which we mentioned above) are one way to do this. But another strategy is to repurpose the heat that cooling systems pump out of data centers. Communities can reuse heat in homes, for example—or, more creatively, heat swimming pools or grow plants.

Heat reuse practices like these are already underway. As businesses focus on data center sustainability, expect to see more of them in 2025.

  • Cooling System Analytics

To optimize your data center cooling system, you must first identify its weaknesses. This is where cooling system sensors and data analytics come in. By collecting and analyzing data such as the temperature within various parts of a data center, operators can determine which equipment runs hotter than it should. They can also find instances where cooling systems remove more heat than necessary, which could signify wasted cooling capacity and energy.

Sensor-based temperature monitoring and analytics in data centers is not a new practice. However, advancements in AI technology have made it easier than ever to process this data and identify optimization opportunities based on it. Therefore, we’ll likely see more and more investment in this cooling system analytics in 2025.

  • Higher Target Temperatures in Data Centers

Traditionally, data center operators have aimed to keep server room temperatures below. However, some data center companies have begun experimenting with somewhat higher temperatures in their server rooms, and they’re reporting success. By increasing target temperatures to the higher 70s, they can reduce the load on cooling systems without experiencing overheating events for IT equipment.

While it’s essential to ensure that servers can tolerate higher temperatures before adopting this practice, this is another low-cost way to improve cooling capacity and reduce energy use, which is why I suspect we’ll see more data center operators adopting this tactic in the new year.

Conclusion

ESDS leads the industry by providing innovative, cutting-edge data center cooling solutions developed with current market requirements. Using liquid cooling technology, ESDS helps data center operators shift from conventional air cooling to a far more efficient and sustainable option.

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Dec 23, 2024
0 Data Centers

How Data Centers in 2025 Will Solve the World’s Energy Crisis Without Sacrificing Performance

In the context of an unfolding energy crisis, data centres stand out as both part of the challenge and part of the solution. The transformation of services over the internet via cloud computing, IoT devices, AI, and big data analytics has increased the need for important data center resources exponentially. However, this development comes with a great drawback: energy usage.

Data centers are said to consume between 1-2% of the global electricity shares, and these figures are said to go up sharply with the increasing pace of digitalization. In India alone, “the sector spent close to 2.5 TWh of electricity in 2023, a number that is predicted to reach 5 TWh by 2025 during the transition phase.” With growing apprehensions about the impact of activities on the environment, data center service providers are adopting advanced technologies to optimize their efficiency and energy consumption at the same time.

The Energy Dilemma of Data Centers

Modern data centers house thousands of servers, cooling systems, and auxiliary equipment, operating 24/7 to support global digital needs. This continuous operation translates to massive energy requirements. According to a 2023 study, global data centers consumed around 340 TWh, contributing significantly to carbon emissions. This energy-intensive nature raises questions about their sustainability.

In India, the scenario is equally pressing. With the country poised to become a global digital hub, the data center sector is projected to reach a staggering 10 TWh in energy consumption by 2030. This increase underscores the urgent need for innovative energy management and greener practices.

The 2025 Revolution: Green and Smart Data Centers

The future of data centers lies in a combination of sustainability and advanced technology. Here’s how data center providers are addressing the energy challenge without compromising on performance:

1. Integration of Renewable Energy Sources

Data center operators are increasingly turning to renewable energy solutions, including solar, wind, and hydroelectric power, to reduce reliance on fossil fuels. Globally, the shift toward green energy has gained momentum, with renewable sources expected to combine a significant portion of the power mix by 2028.

Now India is taking significant actions. A substantial percentage of new data centers are being designed to run on renewable energy, aided by government incentives and corporate sustainability goals. This transition not only reduces emissions but also stabilizes operational costs by mitigating exposure to volatile energy prices.

2. Advanced Cooling Technologies

Cooling systems are among the largest energy consumers in data centers. Traditional air-conditioning systems are being replaced by more efficient alternatives like liquid cooling and free-air cooling. These methods use advanced designs to maintain optimal temperatures with minimal energy consumption.

Innovative cooling solutions are particularly critical in India, where high ambient temperatures pose unique challenges. Energy-efficient cooling not only supports sustainability goals but also ensures the reliability of data center servers, which are sensitive to temperature fluctuations.

3. AI-Powered Energy Optimization

Machine learning and AI now make it possible to optimize data center management through anticipating maintenance on systems, resource placement, and energy use management in real time. Smart AI systems can switch off unnecessary workloads, dormat servers during non-usage periods, etc., as well as keep monitoring and controlling Power Usage Effectiveness (PUE) metrics.

For instance, machine learning-based cooling models are able to estimate the server load cooling demand in terms of external temperatures and utilize energy sources smartly with assurance that the system power will be where it should be.

Ensuring Security and Scalability

While addressing energy concerns, data center service providers must also prioritize data center security and scalability to meet the growing demands of digital ecosystems. Advanced technologies such as zero-trust security frameworks, edge computing, and modular data centers are enabling providers to deliver seamless, secure, and scalable solutions.

Enhanced Security Measures

With the proliferation of cyber threats, data center management companies are investing heavily in multi-layered security protocols, including AI-driven threat detection, encryption, and physical access controls. These measures ensure the protection of critical data while minimizing downtime and energy waste caused by potential breaches.

Modular Data Centers

Modular designs allow for incremental expansion, reducing upfront energy costs and ensuring that capacity grows in line with demand. This flexibility makes modular setups an attractive option for top data centers in India, where rapid scalability is crucial.

India’s Path to Sustainable Data Centers

India’s growing data center market offers immense opportunities for growth, but sustainability must remain at the forefront. The government, along with industry stakeholders, has introduced several initiatives to promote greener practices:

•             Energy-Efficiency Frameworks: Collaborations between research institutions and industry bodies have led to the development of best practices for energy-efficient data center management.

•             Renewable Energy Incentives: Policies promoting solar and wind energy adoption are driving the green transition for data center services in India.

•             Localized Cooling Solutions: Advanced cooling technologies tailored for Indian climatic conditions are gaining traction, enabling both cost and energy savings.

The Road Ahead

By 2025, the convergence of renewable energy, AI-driven optimization, and advanced cooling technologies will redefine the way datacenter providers operate. These advancements will enable data centers to meet the growing demand for digital services while mitigating their environmental impact.

India’s data center industry, with its rapid growth and increasing focus on sustainability, is well-positioned to lead this transformation. As top data centers in India embrace these innovations, they will not only contribute to solving the world’s energy crisis but also set benchmarks for responsible and efficient operations.

In a world increasingly dependent on digital infrastructure, the dual goals of performance and sustainability are no longer mutually exclusive. With smart investments and a forward-looking approach, data center services can pave the way for a greener, more connected future.

ESDS: Pioneering Sustainable Data Center Solutions

At the forefront of this revolution is ESDS Software Solutions Ltd., a trusted name in the industry renowned for offering innovative and sustainable data center services. With a commitment to delivering high-performance data center servers and advanced cooling systems, ESDS is setting new benchmarks for efficiency and reliability.

ESDS is not just a leader in technology but also a pioneer in environmental responsibility. By integrating renewable energy sources and cutting-edge energy optimization techniques, ESDS ensures that its data center services in India align with global sustainability goals.

Whether you are a growing business or an established corporation, ESDS provides secure, scalable, and energy-efficient solutions tailored to your needs. Partner with ESDS and experience how the right data center service providers can help your organization thrive in a sustainable digital ecosystem.

Choose ESDS. Innovate responsibly. Power the future.

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