Redefining Data Infrastructure: The Rise of Prefabricated Construction in India’s Data Center Market
CXOToday has engaged in an exclusive interview with Mr. Nikhil Bothra, Director, EPACK Prefab.
- What is driving the sudden demand for data centers in India? Are there any challenges faced in the industry?
The pandemic has led to an increased dependency on digital services, raising concerns about data privacy and security. This prompted the government to increase their focus on data localisation in India. Driven by India’s data protection norms and the proposed data centre policy, major global data players like Google, Microsoft, Amazon, etc. are looking to expand in India. The exponential growth in the data centre market is also in line with the increasing data consumption and rapid adoption of cloud, supported by government initiatives like Digital India, driving digital infrastructure growth in the country.
However, despite the promising outlook in the industry, some challenges do persist. One of the major challenges is the lack of suitable land for construction in Tier – 1 and Tier – 2 cities, which are currently witnessing the highest demand for data centers. Additionally, there is the issue of delayed execution due to extensive government processes for approvals, depending on the state. For example, Mumbai has different construction policies as compared to Chennai. These factors pose a significant challenge to the data centre construction industry in India.
- How are the government and other investors reacting to development in the data construction market?
The government is prioritizing stable data center infrastructure to ensure data security and uninterrupted internet consumption.
Various initiatives have been introduced by the government, including a draft data centre policy that proposes a policy framework for structural and regulatory interventions as well as requirements regarding approvals for operationalisation of data centres. Incentives have also been introduced to encourage private investments.
Foreign investors and data entre enterprises are keenly seizing on the Greenfield expansion opportunities presented by data centers.
With all of the major development in this market, global investors are anticipated to allocate money in the Indian market, with ongoing investments by Adani Group, Amazon Web Services, and Google.
The top cities in India that will be primary be the hotspots for data centres are Mumbai, Delhi, Hyderabad, and Chennai. Property consultant Colliers has forecast the data center stock to rise to 23 million sq. ft. in terms of real estate space across the top seven cities.
- What opportunities does EPACK see for prefabricated construction in this market?
The data centre growth indicates a significant increase in the number of data centers that will be constructed in the near future. Data centers require a construction solution that matches the speed of the industry itself.
In response to these demands, Pre Engineered Building construction emerges as only the construction technology that can redefine the landscape of data center construction.
In today’s fast-paced digital environment, waiting for years for a traditional data center to be operational is no longer sustainable. Speed is of the essence, and Pre-engineered data center solutions are at the forefront, slashing construction timelines by up to 60%. Thus, pre-engineered buildings can accelerate data center construction in India.
- In what ways, is the prefab construction a better answer than the traditional route of construction?
Prefabricated construction slashes construction timelines by up to 60%. They are constructed from pre-fabricated components that are manufactured off-site and then assembled on-site. This construction process significantly reduces the overall construction time and cost when compared to traditional construction methods.
This means faster construction, along with cost-efficiency and limited use of resources. Additionally, PEBs are highly customizable, allowing them to be tailored to meet the specific requirements of a project.
They are also constructed from recyclable materials and can be easily dismantled and relocated, making them an environmentally friendly option. This means that using PEBs for data center construction will not only accelerate the industry but also contribute towards government’s net-zero goals.
- What percentage of time and money can be saved by using PEBs for data center construction compared to traditional brick-and-mortar methods?
Prefabricated construction slashes construction timelines by up to 60%. The construction site is not where the pieces are made; rather, they are made elsewhere and then shipped to the site. Thus, the usual elements that cause delays in conventional construction, such as weather and availability of resources, are not an issue.
Factors like reduced labour cost, quick ROI, and lesser construction time also saves construction costs by up to 20%. Furthermore, the modular buildings are rigid and sturdy, which also makes them resistant to extreme weather conditions or natural calamities like earthquakes. This incurs lesser losses in case of adversities.
- What other problems can PEBs solve by virtue of its technology, methodology, and usability?
Traditional brick and mortar construction has many drawbacks that can be solved by PEBs. The data centre market in India was valued at $4.35 billion and is predicted to reach $10.09 billion by 2027. Faster construction is required to meet this goal, and this can only be done with the use of PEBs. With traditional construction, brownfield expansion of existing facilities can be a lengthy and tiresome process. Since there is a lack of suitable land for construction in Tier-1 and Tier-2 cities, scalability of current data centers can be smoothly executed by PEBs, owing to their customization benefits. Additionally, the environmental benefits of PEB construction also align well with the government’s net zero goals by 2030.
PEBs offer energy efficiency and their insulation qualities can provide defined temperatures needed for machines and equipments to operate in data centers. They are also zero-maintenance buildings, which will be perfectly suited for such places.