Meta, the parent company of popular social media platforms Facebook, Instagram, and WhatsApp, has announced plans to establish its inaugural data centre in India.
Partnership with Reliance Industries
The data centre will be located at the Chennai campus of Reliance Industries, owned by Mukesh Ambani, Asia’s wealthiest individual.
This collaboration between Meta and Reliance Industries signifies a significant milestone in India’s digital landscape.
Local Content Production
The primary objective behind Meta’s foray into India is to produce local content tailored to the preferences and cultural nuances of Indian users.
By doing so, Meta aims to enhance user engagement and satisfaction across its platforms.
Deal Finalization and Campus Details
Reports suggest that the deal between Meta and Reliance Industries was solidified following discussions during the pre-wedding festivities of Anant Ambani and Radhika Merchant in early March. The exact value of the deal remains undisclosed.
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The campus, spanning 10 acres in Chennai’s Ambattur Industrial Estate, will boast a capacity of up to 100MW IT load.
Improving Data Processing Speed
Meta plans to operate four to five nodes across multiple locations in India to bolster data processing speed.
Currently, data from Indian users is processed at Meta’s centre in Singapore.
Establishing a data centre in India will not only expedite data processing but also optimize local advertisements and user experience while reducing transmission costs.
Strategic Partnerships
Reliance Industries has joined forces with Canadian investment management company Brookfield Asset Management and real estate investment trust company Digital Realty to construct the campus.
Future Expansion and Market Potential
Neil Shah, a partner at technology research firm Counterpoint Research, emphasizes the significance of Meta’s strategy to establish greenfield data centres across key regions in India, including Chennai, Mumbai, Hyderabad, and Delhi NCR.
With India’s vast user base nearing 850 million smartphone users, there is immense potential for Meta to tap into the burgeoning market by localizing content and services.
“Meta would aim for greenfield data centres across key regions including Chennai, Mumbai, Hyderabad and Delhi NCR, which can suffice its strong infrastructure requirements from fibre to power.
“While India has the largest number of users, it is still underpenetrated if you look at the installed smartphone user br which is close to 850 million.
“Trying to localise user-generated content and ads is a prudent strategy as it will reduce latency, enhance AI-driven recommendations, and save transmission costs from Singapore and other hubs.”
Enhanced User Experience
Localizing user-generated content and advertisements is a strategic move by Meta to reduce latency, enhance AI-driven recommendations, and minimize transmission costs.
By catering to the unique preferences of Indian users, Meta aims to further enhance the overall user experience on its platforms.
