Why Mumbai and Chennai Reign Supreme as Data Center Hotspots?
Mumbai and Chennai account for a significant share of India’s total data center capacity. Mumbai leads with a 52% share, followed by Chennai at 16%. The two cities are expected to continue driving the growth of India’s data center market in the coming years.
Mumbai and Chennai are preferred locations for building data centers due to several strategic and infrastructural advantages including:
- Submarine Cable Connectivity:-
Both cities are critical landing stations for international submarine cables, connecting to over 264 global landing stations. This provides high-speed, low-latency internet, essential for seamless global data transfer. Tamil Nadu, in particular, hosts over 30% of India’s subsea cables, making Chennai a key player in connectivity.
- Proximity to Business Hubs:-
Mumbai, India’s financial capital, houses many multinational corporations, IT firms, and financial institutions, driving strong demand for data centers. Chennai, an industrial and IT hub, also thrives with financial firms generating vast amounts of data, making it an ideal data center location.
- Robust Infrastructure:-
Both cities boast advanced power systems, including backup generators and multiple power grids, ensuring minimal downtime. They also offer advanced telecommunications infrastructure with high-speed connectivity and redundant network paths, critical for data center operations.
- Ideal Geographic Location:-
Mumbai’s location on the western coast allows easy access to undersea cables connecting major global networks, enhancing its international connectivity. Chennai is strategically situated outside earthquake-prone zones, providing a safer environment for data center operations.
- Thriving Business Environment:-
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Mumbai and Chennai are home to thriving business ecosystems. Mumbai leads as the center for finance, while Chennai’s growing IT and industrial sectors support a strong demand for data storage and management solutions.
- Government Support and Incentives:-
Both cities benefit from government policies aimed at boosting data center development. The Tamil Nadu government has introduced a proactive data center policy, offering incentives like power subsidies for data centers established between 2021-2026, further enhancing Chennai’s appeal.
- Skilled Workforce:-
The presence of a large talent pool of IT professionals, network engineers, and data center specialists in both cities ensures easy access to a skilled workforce necessary for smooth operations.
- Climate and Natural Disaster Resilience:-
Chennai’s location makes it relatively safe from earthquakes and other natural disasters, while Mumbai, though prone to flooding, has taken measures to mitigate environmental risks.
" With 52% of India’s total data center capacity in Mumbai and 16% in Chennai, these cities are powerhouses in India’s data center industry, and they are expected to continue driving the sector’s growth in the coming years."