• Home >
  • blogs >
  • Build vs Buy: Strategic Considerations for Data Centers in India's 2024 Digital Landscape

Build vs Buy: Strategic Considerations for Data Centers in India's 2024 Digital Landscape

Nxtra by Airtel | August 07, 2024

Data Centers

The Need for Data Centres

In today's digital age, businesses heavily rely on data for decision-making, operations, and customer interactions. Data centers are:

  • The backbone of this digital infrastructure
  • Providing the necessary computing power
  • Storage
  • Networking capabilities

For companies in India, the need for robust data centers is more pressing than ever due to the rapid digital transformation, increasing internet penetration, and the rise of technologies like AI, IoT, and Big Data.

As digital transformation accelerates, deciding whether to build or buy data center infrastructure is pivotal for CTOs steering their organizations into the future. For Indian enterprises in 2024, this choice significantly impacts reliability, scalability, network performance, security, sustainability, cost efficiency, and compliance management. Here's a strategic overview favouring third-party data centre solutions.

Reliability: Ensuring Uninterrupted Operations

In today's digital era, 100% infrastructure uptime is non-negotiable. Third-party data centers offer TIA 942/Uptime certification, dual power feeds, N+N distribution layers, and redundant infrastructure. These features collectively minimise the risk of unplanned disruptions and downtime, ensuring that new-age digital infrastructure can power end-user services around the clock.

Scalability: Growing with Your Business

A third-party data center partner can design and operate modern, purpose-built facilities that provide the flexibility to scale as your business grows. In contrast, captive data centers face structural limitations, restricting their ability to accommodate ever-increasing digital content and user demands.

Network Performance: Leveraging Advanced Interconnectivity

Hosting IT infrastructure with an experienced data center partner grants access to a robust interconnection ecosystem. This includes carrier-neutral infrastructure, peering arrangements, internet exchanges, CDN, and multi-access cloud connections. Captive data centers often need help with fewer telco options, limited bandwidth, peering issues, and last-mile connectivity problems, potentially leading to performance bottlenecks and disrupted user experiences.

Security: Protecting Critical Data

Third-party data centers are purpose-built with physical and electronic security measures, adhering to global standards and regulations. These facilities offer multi-layered high-level security features such as under-vehicle scanners, surveillance cameras, biometric access, intrusion detection systems, man traps, and centralised command centers. This comprehensive security approach ensures a safer environment for safeguarding sensitive data.

Sustainability: Meeting Green Goals

Data centers are notorious for high energy consumption. Low Power Usage Effectiveness (PUE) is crucial for energy optimisation and sustainability. Third-party data centers, designed with green operations and powered by renewable energy, can achieve resiliency and lower PUE. This supports environmental goals and offers economies of scale and reduced Total Cost of Ownership (TCO) for enterprises and hyperscalers.

Cost Efficiency: Managing Financial Impact

Building a new data center requires significant capital expenditure (CAPEX). Third-party data centers offer a more flexible OPEX model, allowing organisations to pay only for what they use. Additionally, companies can benefit from industrial power rates and green power options, which are significantly lower than commercial rates.

Compliance and Management: Simplifying Complexity

Managing compliance with multiple regulatory bodies and ensuring smooth data center operations involves substantial complexity and investment. Colocation-managed services enable enterprises to focus on their core business while leaving routine and ad-hoc tasks to highly skilled technology professionals. This ensures uninterrupted operations and alleviates the burden of maintenance and monitoring.

Future-ready Data Centres

The rise of AI/ML-based applications, which are data-hungry and compute-intensive, is driving the demand for robust, new-age data centres capable of handling very high-density workloads up to 70-80 KW per rack. This is achieved using advanced liquid cooling and direct-to-chip technologies. Building new hyperscale data centers designed to manage these complex AI/ML workloads through next-gen cooling technologies is becoming a growing priority.

Third-Party Data Centers: Compelling advantages for the future

For CTOs in India navigating the rapidly evolving digital landscape of 2024, third-party data center solutions present compelling advantages. From ensuring reliability and scalability to enhancing network performance, security, sustainability, cost efficiency, and compliance management, the strategic benefits of buying outweigh the challenges of building. By partnering with experienced data center providers, enterprises can achieve operational excellence and confidently drive their digital initiatives forward.

Nxtra by Airtel, a subsidiary of Bharti Airtel Limited, offers largest network of secure, scalable, and sustainable data centers in India to leading enterprises, hyperscalers, start-ups, SMEs and governments.

Follow us on :

Get the latest insights straight to your
inbox, every week

Nxtra Blog