India potential for big data rush
The surging utilization of digital services driven by the widespread adoption of artificial intelligence (AI), digital payment systems, and the Internet of Things (IoT), has created an unprecedented need for dependable data centers. These facilities play a crucial role in hosting robust IT infrastructure for the storage and management of data.
Prominent companies including Google, Amazon, Microsoft, and Adani have committed substantial investments to establish data centers in India. Nasscom predicts that India has the potential to attract a significant share of global data center investments, with annual investments anticipated to reach $6-$8 billion by 2025.
Data centers rely on IT infrastructure, encompassing servers, storage, networking elements like switches and routers, as well as systems and application software. Ensuring uninterrupted power supply and implementing robust cooling systems are essential prerequisites for data centers.
- Colocation enterprise (on-premises): This allows individuals or organizations to lease server space.
- Managed service cloud data centers (cloud computing): These are overseen by a third party, managing them on behalf of companies.
Devroop Dhar, Managing Director and Co-Founder at Primus Partners Views:
Devroop Dhar highlights that the demand for data localization, accessing data in local languages, and the overall expansion of the digital economy are driving the growth of data centers in India. This growth aligns with the overall development of the country.
“Data centers can be classified into different tiers based on redundancy levels across various aspects, including equipment, storage, servers, uplink, and power. With a renewed focus on energy efficiency, data centers are increasingly prioritizing environmental sustainability. This green initiative is now a prominent trend in the commissioning of all data centers,” says Dhar.
Jeyakumar Janakaraj, CEO of AdaniConneX, a joint venture between Adani Group and EdgeConneX reports
Companies are progressively directing their investments towards data centers in India due to the substantial growth in data creation and consumption. This surge underscores the necessity for a dependable, automated, and environmentally sustainable digital infrastructure. Edge data centers, positioned at the network’s periphery, are characterized by their compact size.
Crisil’s recent report
As per a recent report by Crisil, the data center capacity in India is set to double to 1,800 MW by the fiscal year 2025. These data centers are strategically situated, and security is a pivotal factor. Organizations place significant importance on Tier levels, as higher tiers signify more advanced cyber security measures in their facilities.
Future trends in data centers
- Data centers will prioritize environmental sustainability as a central strategy.
- Cloud computing will become the norm for companies seeking flexibility.
- Data center operations will increasingly emphasize enhanced automation. Security and cyber resilience will be pivotal for the industry’s integrity.
- The proliferation of generative AI, particularly, is poised to drive substantial growth in the data center sector, demanding extensive digital processing and storage capacity.
Behind the Big Data Rush to Montréal (Greater Montréal: A Hotspot for Data Hosting and Processing)
Montréal, Québec, has evolved from being merely an IT outpost to becoming a thriving epicenter for cutting-edge technologies such as big data, cloud computing, artificial intelligence, and machine learning. Major players like Google and Amazon Web Services have joined established cloud-computing providers like Microsoft in launching data center projects in and around the metropolitan area. Google, in particular, highlighted the vibrant tech scene in Montréal when selecting the city as the location for its seventh global Cloud Computing hub.
James Lambe, the manager for Google Cloud in Canada, pointed out, “There’s a significant surge in artificial intelligence and machine learning activities.” While Google hasn’t disclosed the exact size of its investment or a projected completion date, it has emphasized that the new Montréal Cloud Region will provide faster access to its Canadian subscribers due to its close proximity. Currently, about 90 percent of internet traffic in Canada is routed through the United States.
The big data rush: how data analytics can yield underwriting gold
A recent study conducted by Market Force, in collaboration with the Chartered Insurance Institute (CII), the Chartered Institute of Loss Adjusters, and the Ordnance Survey, has highlighted the imperative for the insurance industry to embrace new operational approaches to effectively harness Big Data. This adaptation is seen as essential for maintaining competitiveness in the coming years.
According to the research findings, a significant 82% of respondents believe that insurance companies failing to leverage the potential of Big Data will risk becoming noncompetitive. The survey, involving members of the CII’s Underwriting Faculty, also unveiled that a remarkable 90% of underwriters think that having access to real-time claims data could significantly enhance the accuracy of risk pricing. Among the various insurance lines, motor (88%), household (76%), and health (60%) were identified as areas where Big Data-driven pricing models could bring about transformative improvements in pricing precision.
Sarah Adams, Financial Services Sector Manager at Ordnance Survey
Sarah Adams, Financial Services Sector Manager at Ordnance Survey, emphasized the significance of data integration, stating that “Data is most potent when interconnected with other datasets. This allows underwriters not only to validate existing data but also to uncover previously unnoticed patterns and risks. Big Data has the potential to revolutionize underwriting by enhancing risk analysis and pricing precision, prompting insurers to better align premiums with risks. The ability to assess risk at a granular level will lead to more accurate pricing-risk correlation, bolstering insurers’ resilience and profitability. By applying human expertise, creativity, and insight to data, underwriters can effectively turn Big Data into a valuable asset.”
These insights were derived from a survey conducted by the Ordnance Survey and the Chartered Institute of Insurers in March 2013, which involved 242 members of the CII’s Underwriting Faculty. Simultaneously, 220 members of the Chartered Institute of Loss Adjusters were surveyed to understand the data they collect and how underwriters could maximize its utility.