Our Digital Economy depends on robust Data Centers (DC)

DE-CIX is the world’s largest Internet Exchange in Frankfurt (Germany) with 11 terabits per second of data throughput. DE-CIX India is a carrier-neutral Internet Exchange Interconnecting Internet Service Providers (ISPs), Content Delivery Networks (CDNs), Over The Top (OTT) players, DNS root servers, Telco and Social Media Networks

By Sudhir Kunder

Data has become the lifeblood of today’s global digital economy, everything from retail to manufacturing to infrastructure and transportation is powered by data. And data centers comprise a critical foundation. As Enterprises expand their product range and scale, data centers have become a critical part of organisational infrastructure. Internet of Things (IoT) and cloud storage, e-commerce applications have only increased the need for data storage and retrieval in a secure manner.

Digital will become an essential aspect of economic recovery. In the Hospitality Industry, for example, you see empty restaurants but online delivery services booming.

Does the Aatmanirbhar initiative impact the DC business?

In the Budget 2022, the Government has accorded infrastructure status to Data Centers. Essentially recognising it as a core part of the economy, much like power or telecom networks. This is a huge incentive and will provide an impetus for Digitalization of our country. Further, the reduction in the License Fees for ISPs is another great step. New entrepreneurs will be encouraged and more digitalization will increase the demand for Data Centres, Internet Exchanges, and Cloud Exchanges.

Traffic at DE-CIX DCs

Data traffic and demand for bandwidth are both increasing. In the last two years, we have seen a massive explosion in consumption across all categories. From February 2020 to January 2022, OTT and Video on Demand services grew by 2,314%, and Gaming grew by 2,015%. Similarly, ISP traffic increased by 690%, while traffic from Content Delivery Networks increased by 735%. The traffic on CDN has grown by 735%. Data traffic on Social Media and Online has grown by 681%, and Hosting has grown by 285% over the same period.

Guidelines to ensure Interconnected Data Centres (IDC) is the need of the hour. The overall pie is so large that this will only help all participants.

DC viability and growth

We need enabling policies from the Government to support cooperation amongst stakeholders, encourage the development of IXs along with fiscal incentives, and remove roadblocks like ROW for Infra-builders. This will be in the ultimate interest of Digital India and every Internet user in the country. Guidelines to ensure Interconnected Data Centres (IDC) are the need of the hour. The overall pie is so large that this will only help all participants.

A growth-based model should be acceptable to everyone – interconnection should be on terms that meet all technical and security requirements. Non-traditional members such as government networks, research networks, and education networks should be part of such Interconnected Data Centres and local carriers and content providers should also connect. With appropriate incentives, this ecosystem can reach all corners of the country.

Kunder is Country Director, DE-CIX India

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