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Data Centre Colocation Services: Key Driver in India’s Digital Economy

In today’s internet age, governance and commercial activities generate tons of data. Every day, colossal volumes of data is produced from terrestrial as well as extra-terrestrial sources like space telescopes, space probes, and satellites. Today, machine learning algorithms have taken over manual systems therefore it is inevitable that the global economy will be dominated by data. 

Proliferation of Data Services 

Across the world, internet connections have improved by leaps and bounds, and 5G technology is already being discussed. As a result, smart devices like temperature and light sensors and bio-sensors are becoming popular. Today, futuristic scenarios have become the norm. There is car parking on the top floors of high-rise buildings as well as robots/drones delivering parcels to consumers’ doorsteps. Driverless vehicles like trucks and cars are almost ready for production. These devices utilize cloud storage and have become sources of customized data generation. 

To reduce data security risk, it is essential to have sensitive business and personal data stored inside a nation’s borders. For the same, effectively managing and fulfilling the data storage needs of enterprises, data centres and colocation services have become an essential. As a result there is a boom in the data centre market and demand is outgrowing the supply. In India too, there is growing demand for colocation services and data centres which is enhanced by laws linked to data localization and security. 

Today, the market landscape is more dynamic than ever, and only those businesses with a quick response plan for fulfilling consumer requirements and scaling technological capabilities will survive. Of late, edge data centres have emerged as a natural response towards the ever-increasing demand for online content as well as towards the trend of networks transitioning into the cloud. Increasing network performance for businesses, Edge data centres offer highly localized storage features, with access to an internal network of servers. This kind of facility is vital for modern businesses that have staff working in different geographies and remotely. The importance of data centres and colocation services has consequently increased due to the travel curbs forced by the pandemic. 

Increased Need for Digital Communication 

Digital communication has become essential as individuals have become isolated in the ongoing crisis. Regular staff members are working from home and need to access the internet for daily office work and communication. Thus, online communication is consistently generating high data volumes. 

Isolation and uncertainty have made digital data storage and sharing vital to prevent the global economy from collapsing. The outbreak has served to increase the use of IoT, cloud storage, AI, and other technologies. For instance, cloud storage offers many benefits as data is stored on colocated computer servers in advanced data centres. 

Benefits of Colocation Services

Let’s look at the main advantages offered by colocation services:

Data Security 

Colocation data centres deploy constantly-upgraded multi-layer physical security solutions to safeguard data from physical breaches and theft. This high level of data safety needs skilled manpower and advanced tools which are not available to most organizations. Therefore, it’s smart for businesses to utilize a local colocation services provider to store their sensitive data. 


Compared to the in-house legacy systems of organizations, high-capacity data centres can provide much better uptime. Plus, these colocation services offers great flexibility and allow you to scale the resources up or down as per current requirements. You can simply pay for what you use and avoid the heavy upfront investments needed to build capacity for future demands. 

Improved Communication

Data centres deliver sophisticated cloud communication features to enhance digital communication. Businesses need not be affected by location/geographical barriers as their remote employees can seamlessly communicate and collaborate like in a physical office. Thus, staff members can work from any place and contribute to the organization’s goals via video conferencing, telecommuting, and other cloud communication tools. 


Data centres and colocation services deploy advanced technologies to facilitate automation of vital business processes leveraging cloud technology and enabling reduction of enterprises’ carbon footprint by lowering energy consumption and ensuring optimized resource utilization. 

Localized data centres and colocation services are the technology empowering providers of the future. These facilities can keep data safe locally while boosting the digital economy globally. Thus, this is the right time for your business to hire a suitable data centre to enjoy the many benefits of cloud adoption. The increased demand for data centres is expected to lead to building of hyperscale facilities that provide IT power of more than 50 MW and Mumbai is the leading city for these types of data centre hubs.

STT GDC India offers colocation services to digitally empower businesses. They operate 18 advanced data centres spread across 2.5 million sq. ft. in 9 Indian cities.

About Anirudh Singh

Anirudh Singh is a passionate blogger and the man behind Amazing India Blog. He has 5 years of experience in the newspaper industry and he founded Amazing India Blog in 2015. Apart from writing and editing articles on Travel, Business and Technology at Amazing India Blog, he also contributes to other well known newspapers and online news blogs.