17 Feb 2026·Source: The Indian Express

3 min

EconomyScience & TechnologyNEWS

Digital infrastructure crucial for India's data center ambitions: Yotta CEO

Yotta CEO emphasizes digital infrastructure's role in India's data center growth.

The article features an interview with the CEO of Yotta, a data center company, who emphasizes the importance of robust digital infrastructure for India to achieve its aspirations in the global data center market. The CEO highlights the need for investments in reliable power supply, connectivity, and skilled workforce to support the growth of data centers in India. The piece also discusses the potential of data centers to drive economic growth and innovation in the country.

UPSC Exam Angles

GS Paper III (Economy): Infrastructure development, investment models

GS Paper II (Governance): Government policies and interventions for development of various sectors

Connects to Digital India initiative and its impact on economic growth

In Simple Words

Imagine the internet needs huge warehouses to store all the information and keep things running smoothly. These warehouses are data centers. For India to be a big player in the digital world, it needs lots of these high-quality warehouses.

India Angle

For a shopkeeper, this means faster online transactions and reliable digital payment systems. For a farmer, it could mean better access to weather information and online markets. For a student, it means smoother online learning and research.

For Instance

Think of it like your local electricity grid. If the power is always cutting out, businesses can't run properly. Similarly, if India's digital infrastructure isn't strong, data centers can't operate effectively.

Better digital infrastructure means more reliable internet, smoother online services, and a stronger digital economy, all of which directly impact daily life.

Strong digital foundations build a strong digital nation.

Visual Insights

Key Statistics Highlighted by Yotta CEO

Key aspects of digital infrastructure for India's data center ambitions, as emphasized by the CEO of Yotta.

Importance of Digital Infrastructure: Crucial
Focus Areas: Power, Connectivity, Skilled Workforce

More Information

Background

The growth of data centers is closely linked to the evolution of India's digital economy. Initially, data was primarily stored on individual computers or servers within organizations. As internet usage increased, the need for centralized data storage and processing led to the development of early data centers. These early facilities were often basic, lacking the advanced infrastructure of modern data centers. Several factors have driven the expansion of data centers in India. The increasing adoption of cloud computing by businesses and individuals has created a significant demand for data storage and processing. Government initiatives like Digital India, which promotes digital literacy and infrastructure development, have also played a crucial role. Furthermore, the rise of e-commerce and online services has generated vast amounts of data that need to be stored and managed efficiently. Data centers are also affected by government policies related to data localization. These policies, which sometimes mandate that certain types of data be stored within the country, can influence the demand for domestic data center capacity. The regulatory environment, including policies on power supply, connectivity, and environmental clearances, also plays a significant role in shaping the growth and development of the data center industry.

Latest Developments

In recent years, India has witnessed significant investments in the data center sector. Several large-scale data center projects have been announced and are under construction across the country. These investments are driven by the increasing demand for data storage and processing, as well as the government's focus on promoting digital infrastructure. The government is actively working on policies to support the growth of the data center industry. This includes streamlining the approval process for data center projects, providing incentives for investments, and ensuring reliable power supply and connectivity. The aim is to create a favorable environment for data center operators and attract further investments in the sector. Looking ahead, the data center industry in India is expected to continue its rapid growth. Factors such as the increasing adoption of 5G technology, the growth of the Internet of Things (IoT), and the increasing demand for artificial intelligence (AI) applications are expected to drive further demand for data storage and processing. This will create significant opportunities for data center operators and contribute to the growth of India's digital economy.

Frequently Asked Questions

1. What is the role of digital infrastructure in the growth of data centers in India?

Digital infrastructure, including reliable power supply and connectivity, is crucial for India to achieve its data center ambitions. Investment in these areas is needed to support the growth of data centers and drive economic growth and innovation.

2. What are the key components of digital infrastructure that are essential for data centers?

The key components include a reliable power supply, robust connectivity, and a skilled workforce.

•Reliable Power Supply: Data centers require a constant and stable power supply to operate without interruptions.
•Robust Connectivity: High-speed internet and network connectivity are essential for data transfer and communication.
•Skilled Workforce: Trained professionals are needed to manage and maintain the data center infrastructure.

3. Why is India focusing on developing its data center infrastructure?

India is focusing on developing its data center infrastructure to support the growth of its digital economy, meet the increasing demand for data storage and processing, and drive economic growth and innovation.

4. What recent developments have occurred in India's data center sector?

In recent years, India has witnessed significant investments in the data center sector, with several large-scale projects announced and under construction across the country. These investments are driven by the increasing demand for data storage and processing and the government's focus on promoting digital infrastructure.

5. What are the potential benefits of a thriving data center industry for the Indian economy?

A thriving data center industry can drive economic growth, foster innovation, and create employment opportunities in India. It also supports the growth of the digital economy and enhances the country's competitiveness in the global market.

6. How is the government supporting the growth of data centers in India?

The government is actively working on policies and initiatives to promote the development of digital infrastructure, including data centers. These policies aim to create a favorable environment for investment and growth in the sector.

Practice Questions (MCQs)

1. Consider the following statements regarding the factors influencing the growth of data centers in India: 1. Increasing adoption of cloud computing by businesses and individuals. 2. Government initiatives such as Digital India promoting digital literacy. 3. Rise of e-commerce and online services generating vast amounts of data. Which of the statements given above is/are correct?

A.1 only
B.2 only
C.1 and 3 only
D.1, 2 and 3

Show Answer

Answer: D

All the statements are correct. The increasing adoption of cloud computing, government initiatives like Digital India, and the rise of e-commerce have all contributed to the growth of data centers in India. These factors have created a significant demand for data storage and processing, driving investments in the data center sector.

2. Which of the following is NOT a key requirement for the growth of data centers in India, as highlighted by the CEO of Yotta?

A.Reliable power supply
B.Robust connectivity
C.Skilled workforce
D.Subsidized real estate

Show Answer

Answer: D

The CEO of Yotta emphasized the importance of reliable power supply, robust connectivity, and a skilled workforce for the growth of data centers in India. While real estate is important, the article does not explicitly mention subsidized real estate as a key requirement. The focus is on the digital infrastructure aspects.

3. Assertion (A): Robust digital infrastructure is crucial for India to achieve its data center ambitions. Reason (R): Data centers drive economic growth and innovation in the country. In the context of the above statements, which of the following is correct?

A.Both A and R are true and R is the correct explanation of A
B.Both A and R are true but R is NOT the correct explanation of A
C.A is true but R is false
D.A is false but R is true

Show Answer

Answer: A

Both the assertion and the reason are true, and the reason correctly explains the assertion. A robust digital infrastructure, including reliable power supply, connectivity, and a skilled workforce, is essential for India to achieve its data center ambitions. Data centers, in turn, drive economic growth and innovation by providing the infrastructure for businesses to operate and innovate.

4. Which of the following initiatives is directly related to promoting digital literacy and infrastructure development in India, thereby supporting the growth of data centers?

A.Skill India Mission
B.Make in India
C.Digital India
D.Startup India

Show Answer

Answer: C

The Digital India initiative is directly related to promoting digital literacy and infrastructure development in India. This initiative aims to transform India into a digitally empowered society and knowledge economy, which includes developing digital infrastructure, promoting digital literacy, and delivering government services electronically. This directly supports the growth of data centers by creating demand for data storage and processing.