According to The Economic Times, Mark Zuckerberg’s Meta is expected to establish its first data center in India at the Chennai campus of Reliance Industries. This will assist the massive social media platform in locally processing user-generated content for WhatsApp, Facebook, and Instagram.
Currently, Meta services user data from India out of its data center in Singapore. The largest market for Meta is India, where a local data center will enable faster data processing. Local ads, in addition to content, will enhance user experience and lower transmission costs from global data centers.
The 10-acre campus (MAA10) in Chennai’s Ambattur Industrial Estate is a three-way joint venture between Brookfield Asset Management, Reliance Industries, and Digital Realty. It has a 100 megawatt (MW) maximum IT load capacity.
There are almost twice as many Meta users in India as there are in the US, and Meta Platforms said that during the September 2023 quarter, the amount of money it made from click-to-message advertisements on its flagship platforms in India increased by double. Nonetheless, when you take into account the approximately 850 million installed smartphone user base, Neil Shah, a partner at technology research firm Counterpoint Research, told ET that the Indian market is still underrepresented.
He referred to the localization of user-generated material and advertisements as a wise move since it will improve AI-driven suggestions, lower latency, and save transmission costs.
The credit rating and analytics firm CareEdge Ratings conducted a study that projects that India’s data center capacity would double in three years, from 0.9 GW in 2023 to about 2 GW in 2026.
Numerous industry titans, such as AdaniConnex, Reliance, Sify, Yotta, AWS, and Lenovo, have recently declared significant investments in data centers located around India. Furthermore, the requirement for edge computing, the need to be near clients and provide a faster reaction time and lower latency for time-sensitive applications, are driving the spread of data centers to tier 2, 3 and 4 cities despite the concentration of data centers in tier 1 cities.
The benefits of this proximity are numerous and it is essential for the new demands brought forth by 5G, OTT streaming, online gaming, and AI technologies.
Tier 2 and Tier 3 cities are unexplored but have significant growth potential; the availability of more space and laxer rules might encourage the adoption of sustainable practices, such as the use of cutting-edge cooling systems and renewable energy sources.
All of this can help with more balanced regional development, provide employment, and assist government efforts to digitize the economy of the country.