The Government and the regulatory authorities of India are constantly focusing on the advancement of the digital payments’ ecosystem in the country. According to a Deloitte study, India’s smartphone user base is expected to reach 1 billion (100 crores) by 2026, and interestingly this growth will be largely driven by the country’s hinterlands. This indicates that the amount of user-generated data will only grow in the coming times.

As more and more people get access to internet-enabled mobile devices, the uptake of digital platforms and internet-based services will witness a massive surge, thereby leading to the need for more data center capacities. The pandemic has pushed the demand for cloud across the globe with digital transformation accelerating across industries.

This shift towards cloud has pushed increased investments in hyperscale data centers. The need for data centers has shot up exponentially in proportion to the rise in data consumption and cloud adoption.

The much-awaited Infrastructure status for data centers is a landmark development that will provide a fillip to the industry. As India embarks on the next phase of the Digital India journey, the Government recognises data centers as the backbone of the country’s digital infrastructure.

While the penetration of mobile internet has given us a glimpse of the power of connectivity through increased OTT and social media usage, a robust internet connectivity layer supported by data center presence will catalyse digital adoption at a larger scale. The push for data localisation will not just mandate data to be stored and processed in India, it will also result in a massive influx of Indian data that currently resides in overseas data centers.

One of the key things driving growth lies in Government measures aimed at driving digital infrastructure growth, including the Digital India initiative; classification of data centers as infrastructure assets, and proposing ne.