Mark Zuckerberg’s Meta is likely to house its first data centre in India at the Reliance Industries campus in Chennai, as reported by The Economic Times. This will help the social media giant process user generated content locally for Facebook, Instagram, and WhatsApp. 

Currently, Meta’s Singapore data centre services Indian user data. A local data centre in India, Meta’s largest market, will allow for faster data processing and, in addition to content,  local advertisements will also improve user experience and reduce transmission costs from global data hubs. 

A three-way joint venture between Brookfield Asset Management, Reliance Industries and Digital Realty, the 10-acre campus (MAA10) in Chennai’s Ambattur Industrial Estate can cater up to 100-Megawatt (MW) IT load capacity.

The number of Meta users in India are nearly twice that of those in the US and Meta Platforms reported that its advertisement revenue from click-to-message ads in India, across its flagship platforms has doubled during the September 2023 quarter. However, Neil Shah, partner at technology research firm Counterpoint Research, said to ET that the Indian market is still underpenetrated if you consider the nearly 850 million installed smartphone user base. 

He called localising user-generated content and ads a prudent strategy as it will be beneficial in reducing latency, enhancing AI-driven recommendations, and saving transmission costs. 

As per a study by CareEdge Ratings, a credit rating and analytics company, India’s data centre capacity is expected to double in three years from 0.9 GW in 2023 to around 2 GW in 2026. 

Recently, several giants, including AdaniConnex, Reliance, Sify, Atlassian, Yotta, AWS, and Lenovo, have announced substantial investments in data centres across India. And, despite the concentration of data centres in tier 1 cities, the need for edge computing, the desire to be closer to customers and offer a faster response time and lower latency for time-sensitive applications, is fueling the expansion of data centres to tier 2, 3 and 4 cities. 

This proximity is crucial for the emerging needs driven by 5G, OTT streaming, online gaming, and AI technologies and its benefits are many. 

Tier 2 and Tier 3 cities represent untapped markets with considerable growth potential; the availability of more space and less stringent regulations can facilitate the adoption of sustainable practices, including using renewable energy sources and advanced cooling technologies. 

All this can contribute to more balanced regional development, create job opportunities, and support government initiatives to digitise the nation’s economy.