Empowering India's Data Center's: The Case for Dark Fiber Access
India's data center market is projected to surpass 1,300 MW by the end of 2024, indicating substantial growth potential. According to a 2021 report, the country is expected to attract an average annual investment of $5 billion in the sector by 2025. Additionally, the global AI server market is forecasted to grow significantly by 2029.
The data center industry is urging the government to provide clarity on regulations regarding the use of dark fiber for captive networks, aiming to enhance ease of doing business (EoDB) as the sector experiences growth, driven by increased cloud adoption and artificial intelligence.
Currently, the industry relies on leasing bandwidth from licensed telecom service providers, incurring significant costs. Despite informing the government about the issue, progress has been slow. Dark fiber provisioning could greatly enhance EoDB in India and align with the government's Digital India mission. This move would support enterprises in the country and foster growth in the sector.
Under current regulations, only certain licensed holders can provide leased bandwidth or point-to-point connectivity to enterprises. The industry seeks clarification on whether these license holders can offer dark fibre to enterprises.
Dark fiber allows data centers full control over optical fiber management, which is crucial for captive use cases and expansions across locations. Currently, India lacks a policy on dark fiber, resulting in the need for expensive DWDM (Dense wavelength Division multiplexing) equipment for connectivity.
The industry emphasizes the importance of enabling flexibility for data centers to manage inter-data center traffic, which is a common practice globally and essential for scaling without excessive costs.
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Allowing dark fiber for captive purposes would lower costs for data centers and benefit the startup ecosystem by reducing connectivity expenses. This policy constraint hinders consumer access and the proliferation of digital services. The industry continues to engage with the government to address these issues and hopes for favorable regulatory changes soon.
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