Technology

India’s AI boom could turn data centres into the next big infrastructure race: KPMG

India’s AI Boom Sets Stage for Data Centre Infrastructure Rush

India’s data centre sector is on the cusp of massive growth, projected to reach nearly $46 billion by 2033, driven largely by the increasing demand for artificial intelligence (AI) workloads and cloud adoption, according to a report by KPMG.

AI Workloads Fuel Growth

The surge in AI adoption across various industries is expected to be a key driver of growth for India’s data centre sector, with AI workloads projected to continue to rise exponentially in the coming years. As organisations seek to harness the power of AI to drive innovation and stay ahead of the competition, they require robust and efficient data centre infrastructure to support the intense computational demands of AI applications.

The shift towards cloud adoption and data localisation requirements will also contribute to the growth of India’s data centre sector. As more businesses move their operations to the cloud and localise their data storage to meet data sovereignty requirements, the demand for secure, reliable, and scalable data centre infrastructure will increase.

Challenges Lie Ahead

While the growth prospects of India’s data centre sector are promising, there are challenges that lie ahead. The execution complexity of building and managing AI-optimised infrastructure is a significant hurdle, with organisations requiring expertise in data centre design, construction, and operations.

The demand for skilled professionals with expertise in data centre management, AI architecture, and cloud services will be high. Without adequate talent and resources, organisations may struggle to keep up with the demands of a rapidly growing data centre sector.

What This Means

For businesses and investors looking to capitalise on India’s data centre growth story, it’s essential to understand the opportunities and challenges that lie ahead. With the right expertise and resources, organisations can tap into the lucrative market for AI-optimised data centre infrastructure and reap the benefits of India’s booming data centre sector.

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