Data Centres and the Cloud
Where to Build a Data Centre
How companies choose data centre locations based on power, connectivity, land, water, disaster risk and incentives, and why Mumbai and Chennai lead in India.
Choosing where to build a data centre involves many factors.
Key factors
- Power: reliable, affordable and ideally renewable electricity.
- Connectivity: near undersea cable landings and fibre networks.
- Land: large plots at reasonable prices.
- Water for cooling.
- Disaster risk: floods, earthquakes and cyclones.
- Customers: closeness to users and businesses.
- Incentives: state policies on power tariffs, stamp duty and approvals.
India’s leaders
- Mumbai-Navi Mumbai: the largest hub, with cable landings and financial clients.
- Chennai: cable landings and growing capacity.
- Hyderabad, Bengaluru, Delhi NCR and Pune are growing.
Clusters
Data centres cluster together to share infrastructure and connectivity, an example of agglomeration.
Edge data centres
Smaller edge centres in tier-2 cities reduce latency for local users.
The flood check
A company rejects a cheap plot near a river after checking flood maps, choosing higher ground despite higher land costs.
Thinking data centres can be built anywhere
Power, connectivity, land, water and risks shape locations.
Key takeaways
- Power, connectivity, land, water and risk shape location.
- Mumbai and Chennai lead in India.
- Data centres cluster together.
- Edge centres serve smaller cities.
No recording for this one yet - EconReader can read it aloud for you.