Meta, the company responsible for Facebook, is considering the prospect of establishing its inaugural data centre in India to accommodate the growing popularity of its short video feature, Reels.
Recent Developments: Given India’s significance as a key market, Meta is set to conduct a feasibility study in early 2024, exploring the concept of a “cache-focused” data centre with a potential power usage of 10-20 megawatts.
While the investment details and specific location remain undisclosed, Meta could face a cost ranging from ₹500 to 1,200 crore for setting up such a facility, considering the substantial expense associated with high-quality, reliable data centres in India.
Instagram Reels, introduced in India in July 2020 following TikTok’s departure, has experienced remarkable growth, emerging as a preferred platform for short video enthusiasts and elevating Instagram to the top of the app download charts in 2023.
Significance: Meta’s strategic focus extends beyond Instagram; Reels was integrated into Facebook in 2022, expanding the reach of short video content across its platforms. This initiative aligns with Meta’s broader plan to enhance user experiences, particularly with the introduction of generative AI features.
Currently operating 22 data centres globally, with only one in the Asia Pacific region situated in Singapore, Meta’s proposed investment in India forms part of a comprehensive capital expenditure plan for 2024, aimed at reinforcing server capacity and data centre infrastructure, according to The Free Press Journal.
India’s booming data centre industry is poised to attract $10B in investments in the upcoming years, driven by escalating data consumption and a supportive regulatory environment.
Meta’s endeavours encompass not only the potential establishment of a data centre but also an expansion of its network footprint in India, underscoring a significant emphasis on improving connectivity and service quality in one of its most crucial markets.
(Finance World and The Free Press Journal have published the article under a mutual content partnership arrangement.)
