Introduction: India’s Inland Data Centre Revolution

India is rapidly transforming its digital infrastructure landscape by pushing data centre development beyond traditional coastal hubs into the country’s heartland. This strategic move, highlighted by a recent Times of India article, is not only addressing the nation’s surging data demands but also establishing a scalable template for the Global South. For professional services firms and organizations establishing Global Capability Centres (GCCs), this inland data centre push presents a unique opportunity to tap into new talent markets, optimize operational costs, and drive innovation.

The Strategic Shift: From Coastal to Inland Data Centres

Traditionally, India’s data centre ecosystem has been concentrated in Mumbai, Chennai, and other coastal cities due to their proximity to submarine cable landing stations and established infrastructure. However, as digital consumption skyrockets and regulatory frameworks evolve, the focus is shifting inland. Cities like Hyderabad, Noida, Pune, and Bengaluru are emerging as new data centre hotspots, driven by factors such as land availability, lower real estate costs, robust power supply, and government incentives.

According to a 2023 report by JLL India, the country’s data centre capacity is expected to double by 2025, with a significant portion of this growth occurring in non-coastal regions. This inland expansion is being accelerated by the government’s Digital India initiative, state-level data centre policies, and a surge in demand for cloud services, AI, and IoT applications.

Why India’s Model is a Template for the Global South

The Global South, comprising emerging economies in Asia, Africa, and Latin America, faces similar challenges: burgeoning digital populations, infrastructure bottlenecks, and the need for sustainable, resilient data ecosystems. India’s approach offers several lessons:

• Decentralization: Moving data centres inland reduces pressure on coastal cities, mitigates disaster risks, and democratizes digital access.
• Policy Innovation: State-led incentives, streamlined clearances, and public-private partnerships are accelerating growth.
• Talent Leverage: Inland cities provide access to untapped pools of skilled IT and engineering professionals, lowering costs and fostering regional development.
• Sustainability: New data centres are increasingly powered by renewable energy, aligning with ESG goals and global climate commitments.

As noted by the Times of India, “India’s template is being closely watched by other developing nations seeking to leapfrog their digital infrastructure.”

Opportunities for Professional Services and GCCs

For professional services companies and organizations establishing or expanding GCCs, India’s inland data centre boom unlocks several strategic opportunities:

1. Access to New Talent Pools

Inland cities such as Hyderabad, Pune, and Noida are home to top universities and a growing base of tech-savvy professionals. By aligning data centre operations and GCCs in these regions, companies can access a broader, cost-effective talent pool while reducing attrition rates.

2. Enhanced Data Sovereignty and Compliance

With India’s evolving data protection laws, localizing data storage and processing is increasingly critical. Inland data centres enable GCCs to comply with regulatory requirements while ensuring data security and privacy.

3. Cost Optimization

Real estate and operational costs in inland cities are significantly lower than in Mumbai or Chennai. This cost advantage, combined with government incentives, allows organizations to optimize their digital infrastructure investments.

4. Business Continuity and Disaster Recovery

Inland data centres are less vulnerable to natural disasters such as cyclones and floods, which frequently impact coastal areas. This geographical diversification enhances business continuity and disaster recovery capabilities.

5. Innovation and Ecosystem Development

The inland data centre movement is fostering vibrant tech ecosystems, attracting startups, hyperscalers, and global technology firms. GCCs in these regions can collaborate with local innovators, drive R&D, and accelerate digital transformation.

Recent Research and Market Trends

Recent studies reinforce the momentum behind India’s inland data centre expansion:

• CBRE India Data Centre Report 2023: Forecasts a 700+ MW addition to India’s data centre capacity by 2025, with 40% of new supply coming from non-coastal cities.
• IDC India 2024 Outlook: Highlights the growing demand for edge computing and regional data processing, driving investments in Tier-2 and Tier-3 cities.
• NASSCOM’s GCC India Landscape 2024: Notes that over 60% of new GCCs are being set up in emerging tech hubs outside traditional metros, citing access to talent and infrastructure as key drivers.

These trends underscore the strategic imperative for professional services firms and GCCs to align with India’s inland data centre trajectory.

Han Digital: Your Partner in Navigating Talent and Leadership for Inland Expansion

As organizations evaluate their inland data centre and GCC strategies, partnering with a talent intelligence leader like Han Digital can provide a critical edge.

Han Digital’s Unique Value Proposition

• Deep Talent Market Insights: Han Digital’s proprietary data and research offer granular visibility into talent availability, compensation benchmarks, and skill trends across India’s emerging tech hubs.
• Senior Leadership Connections: With established relationships across the C-suite and senior leadership of leading organizations, Han Digital facilitates strategic hiring, leadership mapping, and succession planning for new GCCs and data centre operations.
• Customized Talent Strategies: Han Digital’s consultative approach helps organizations design and execute talent strategies tailored to specific regions, ensuring rapid ramp-up and sustained operational excellence.
• Market Entry and Expansion Support: From location analysis to talent branding and workforce planning, Han Digital provides end-to-end support for companies entering or expanding in inland markets.

By leveraging Han Digital’s expertise, professional services firms and GCCs can de-risk their inland expansion, attract top talent, and accelerate time-to-value.

Case Study: Optimizing GCC Expansion in Hyderabad

A leading global professional services firm recently partnered with Han Digital to establish a new GCC in Hyderabad, leveraging the city’s growing data centre ecosystem. Han Digital’s market intelligence identified high-potential talent clusters, competitive compensation structures, and key leadership candidates. Within six months, the firm achieved a 40% faster ramp-up and a 25% reduction in hiring costs compared to previous expansions in coastal metros.

This success story illustrates the tangible benefits of aligning inland data centre and talent strategies, supported by expert partners like Han Digital.

Challenges and Considerations

While the inland data centre push presents significant advantages, organizations must navigate several challenges:

• Infrastructure Readiness: Power reliability, connectivity, and logistics must be rigorously assessed in emerging locations.
• Regulatory Complexity: State-level policies and incentives vary; expert guidance is essential for compliance and risk mitigation.
• Talent Retention: Building a compelling employer brand and investing in employee development are crucial for long-term success in new markets.
• Sustainability: Integrating renewable energy and green practices is increasingly important for ESG compliance and stakeholder trust.

Han Digital’s holistic approach helps organizations address these challenges, ensuring seamless inland expansion.

Future Outlook: India’s Data Centre Inland Push and the Global South

India’s inland data centre strategy is setting a new benchmark for digital infrastructure development in the Global South. As more countries look to replicate this model, professional services companies and GCCs have a unique window to lead, innovate, and create sustainable value.

With the right partners, data-driven talent strategies, and a commitment to regional development, organizations can unlock the full potential of India’s digital future—while setting a standard for emerging markets worldwide.

Conclusion

The inland expansion of India’s data centres is more than a domestic infrastructure story; it is a global template for inclusive, sustainable digital growth. For professional services companies and GCCs, the opportunity lies in harnessing this momentum—by tapping into new talent markets, optimizing costs, and building resilient operations.

Han Digital stands ready to guide organizations through this transformation, offering unmatched insights, leadership connections, and strategic support. As India leads the way for the Global South, now is the time to rethink your data centre and talent strategies for 2025 and beyond.