India's data centre infrastructure is poised for a major transformation, driven by a surge in demand from emerging cities and the rise of edge and containerised data centres. This decentralised model of infrastructure is emerging as a critical element in supporting India’s rapidly expanding digital and artificial intelligence (AI)-powered economy. According to Mr. Umesh Sahay, Founder and Managing Director of NES Data, these next-generation data centres will not only support data storage needs but also enhance accessibility, reduce latency, and provide modular, scalable solutions fit for modern applications.

Traditionally, Mumbai and Chennai have dominated India’s data centre capacity, accounting for approximately 70% of the total infrastructure. These cities have remained the preferred locations due to their robust connectivity, established real estate infrastructure, and proximity to undersea cable landing stations. However, the current trajectory shows a marked shift toward Tier 2 cities and remote areas, signalling a broader democratization of India’s data economy.

NES Data, a Pune-based Infrastructure-as-a-Service (IaaS) company, is at the forefront of this evolution. Specialising in colocation and Storage-as-a-Service (StaaS), NES Data is preparing to launch several edge and containerised data centres in July 2025. These centres will be set up in strategic emerging cities such as Jaipur, Ahmedabad, Kochi, Vizag, Lucknow, Patna, and Bhubaneswar, with a mission to bring low-latency, high-efficiency digital infrastructure closer to end-users.

The idea behind edge computing is simple yet powerful: move the data processing closer to the source of generation to improve processing speed and reduce network congestion. This becomes particularly vital in applications involving real-time data processing, such as AI algorithms, autonomous systems, financial trading, e-commerce platforms, and smart city solutions. By placing edge data centres in Tier 2 cities, NES Data aims to ensure that smaller regions are not left behind in the digital race.

Containerised data centres, on the other hand, offer a modular and plug-and-play model, allowing companies to deploy infrastructure within weeks rather than months. These centres can be easily scaled, relocated, or customised to meet specific business or regional needs. With their pre-integrated power, cooling, and networking modules, containerised data centres are being hailed as the future of agile digital infrastructure.

One of the key drivers for this decentralised push is the growing data storage requirement across India. From government departments and private enterprises to startups and cloud-based platforms, the demand for safe, reliable, and fast data infrastructure has exploded. The high capital cost and operational complexities involved in building large-scale hyperscale centres in urban hubs have further accelerated the need for alternative data centre models.

Studies highlight that India’s data centre industry has grown by 288 times in the past eight years, reaching a valuation of ₹10,259 crore (US$ 1.2 billion). And this is just the beginning. According to projections, edge and containerised data centres will comprise 25-30% of all new data infrastructure in India by 2030. This trend reflects a fundamental shift in how digital infrastructure is perceived—from being concentrated and centralised to becoming diverse, decentralised, and demand-driven.

The rise of AI workloads, cloud computing, IoT devices, real-time gaming, telemedicine, and smart devices across India further necessitates localized data processing hubs. In this scenario, edge data centres become indispensable for enabling smoother user experiences, lower latency, and greater computational efficiency—a fact that NES Data is capitalising on with its nationwide expansion.

Tier 2 and Tier 3 cities are especially attractive due to lower land costs, improving power supply, availability of skilled labour, and government incentives. Many state governments have rolled out data centre policies offering fiscal and non-fiscal benefits including single-window clearance, land at subsidised rates, and capex-linked incentives, making them viable destinations for setting up decentralised infrastructure.

Furthermore, NES Data’s approach resonates with the Digital India initiative, which aims to ensure that the benefits of digital services reach every corner of the country. By focusing on decentralisation, NES Data is also reducing the dependency on power-hungry hyperscale centres, which are often built in metros with stretched power grids and limited space availability.

The transition also aligns with India’s sustainability goals. Many edge and containerised centres are being designed with energy efficiency and green certifications in mind. By minimising cooling requirements and employing renewable energy sources, these facilities contribute to lower carbon emissions and reduce the environmental footprint of digital infrastructure.

Moreover, this decentralised model offers a resilient framework in the face of natural disasters, cyber threats, or geopolitical events. Distributed data centres ensure failover capabilities, redundancy, and local data sovereignty, critical in sectors like banking, defence, and e-governance.

NES Data’s expansion strategy is timely. As India becomes a global hub for data-driven innovation, its ability to host and process massive amounts of data locally will determine the success of sectors like fintech, healthtech, agritech, edtech, and e-commerce. Low-latency performance, regulatory compliance, and scalable design will be the benchmarks for data centre excellence, and NES Data is gearing up to deliver on all fronts.

In addition to physical infrastructure, NES Data is focusing on hybrid models—integrating cloud storage, edge processing, and on-premise solutions to provide end-to-end data solutions for businesses. The hybrid approach allows for greater flexibility, cost optimisation, and customisation, particularly for SMEs and startups.

The growth trajectory for India’s data centre market is unmistakable. As NES Data and similar firms continue to deploy edge and containerised solutions, the country’s digital backbone will become more robust, inclusive, and future-ready. By empowering emerging cities, India is not only improving its digital access but also setting the stage for balanced regional development, bridging the urban-rural digital divide.

In conclusion, edge data centres and modular containerised infrastructure, supported by NES Data and others, are the catalysts of India’s next digital leap. With cities like Patna, Kochi, Bhubaneswar, and Vizag joining the data revolution, and edge technologies reducing latency while boosting processing efficiency, India is set to redefine its data storage landscape. As this decentralised ecosystem matures, India’s vision of becoming a digitally inclusive, AI-enabled economy is well within reach.

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