India is poised to remain a key player in the global storage and data center market, with significant growth expected over the next few years. Owais Mohammed, Sales Director for India, the Middle East, and Africa at Western Digital, emphasizes that the country’s data center capacity is likely to double soon, supported by high double-digit growth rates that show no signs of slowing.
This surge is largely fueled by hyperscalers-large-scale service providers whose demand is reshaping the market landscape. According to Mohammed, the increased reliance on artificial intelligence (AI) has led to a pressing need for robust data management solutions. “Hyperscalers prioritize fast, predictable capacity expansion due to sustained demand for long-lived data, including training sets and compliance archives that are retained over time,” he explained. This paradigm shift is driving rapid adoption of higher-capacity nearline drives, alongside heightened interest in next-generation storage technologies as companies prepare for exabyte-scale growth.
Western Digital, also known as WD, reported significant achievements in the nearline Hard Disk Drive (HDD) sector, shipping 3.5 million units of its 32TB HDD in the last quarter alone and projecting shipments to reach 4 million units within the year. Mohammed anticipates a remarkable 25% annual increase in nearline storage exabytes over the next five years, largely attributed to AI workloads and the ever-expanding data requirements of digital enterprises.
Interestingly, even in data centers centered around AI, 80% of the hyperscale storage capacity is still dedicated to HDDs. Mohammed highlighted the reasons behind this trend: “At that scale, cost, density, and power efficiency are paramount. Therefore, HDDs continue to be the most practical and sustainable foundation for managing AI data in a hyperscale environment.”
The Indian government’s recent budget announcement extending tax incentives for data center setup until 2047 sends a strong message about the country’s long-term commitment to building a robust AI infrastructure. This policy is designed to instill confidence among hyperscalers and cloud providers, allowing them to design data centers with an eye toward decades of data growth rather than focusing solely on immediate computing demands. “A 21-year tax horizon empowers these businesses to plan for long-term sustainability,” Mohammed stated.
As India captures a growing share of the global data center market, its strategy highlights a comprehensive approach towards AI infrastructure that is not only responsive to current trends but also anticipates future needs. By providing incentives for long-term investment in data storage capacities, India positions itself as a future-ready hub for the evolving demands of the digital landscape, ensuring its competitiveness in a market that is rapidly advancing.
With an emphasis on strategic growth, cost-efficiency, and innovative technology adoption, India stands out as a noteworthy player in the global storage and data center arena, setting the stage for a future that embraces the complexities of AI and data management.
Categories: Technology, Data Centers, Artificial Intelligence
Tags: India, Data Center Growth, AI Infrastructure, Western Digital, HDD
Original Source: https://www.business-standard.com/industry/news/india-to-see-exponential-growth-in-data-centre-business-wd-sales-director-126030200591_1.html
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Publish Date: 2026-03-02 14:42:00
