Why Eastern India is Becoming the Next Frontier for Data Centre and Tech Infrastructure

Eastern India is rapidly transforming into a key destination for office and data centre investments. This growth is driven by rising digital demand, supportive policies, and lower costs in Tier-2 cities across the region.

Bhubaneswar is a prime example. Tech-enabled offices like iHub Tech Park are creating a new ecosystem for multinational companies. The region offers reliable connectivity, a skilled workforce, and affordable commercial real estate. These factors make it ideal for data centre operators seeking low-latency solutions.

The Data Centre Boom: A Story of Growth

India’s data centre market has grown rapidly in recent years. The country has over 260 data centres across more than 30 locations, with capacity increasing steadily.

Data centre capacity grew from 350 MW in 2019 to 854 MW in 2023. Smaller cities across Eastern India are also witnessing increased data centre activity.

Eastern India is part of this growth trend. According to industry estimates, regions within Eastern India (e.g., Kolkata, Bhubaneswar) currently account for around 12% of India’s total data centre market share.

State governments in Odisha and neighbouring regions offer incentives, including easier approvals for power, land, and connectivity. These simplified approval processes are a major factor in attracting long-term investments.

Bhubaneswar: The Emerging Data Centre Hub in Eastern India

Bhubaneswar is among the fastest-growing IT cities in Eastern India, with new data centres and office parks driving growth.

Data centres are gaining traction in Bhubaneswar. CtrlS Datacenters plans an INR 150 crore (~$18.1M) greenfield edge facility in Infocity. Over the next decade, the project aims to expand into a hyper-scale data centre campus.

These investments create jobs, strengthen infrastructure, and boost the adoption of cloud and hosting services locally. Tech-enabled offices are attracting IT companies, further supporting Bhubaneswar’s tech ecosystem.

Other cities such as Kolkata, Patna, Guwahati, and Agartala are also witnessing early-stage developments, contributing to broader regional momentum.

Is Eastern India Cost‑Effective Compared to Other Regions?

The cost efficiency of Eastern India is one of its biggest advantages compared to Western and Southern India.

1. Reduced Land & Power Costs

Lower land acquisition and construction costs lead to reduced overall capital expenditure for data centre projects. Lower infrastructure costs also stem from these advantages.

Tech-enabled office spaces in Bhubaneswar, such as iHub Tech Park, offer flexible office solutions with all necessary infrastructure within a single campus. This makes it easier for MNCs and businesses to expand their operations in the region.

While tariff comparisons vary across cities, industry studies consistently show that Tier-2 and Tier-3 cities have 20–40% lower real estate development costs than major metropolitan areas.

2. Attracting Long‑Term Commercial DemandKolkata and Bhubaneswar are improving connectivity and power reliability, which are critical for data centres. Investments in fibre networks and planned cable landing stations enable the region to support enterprise and cloud demand with resilient connectivity at lower operating costs.

3. Talent and Growing Tech Workforce

Eastern India offers access to a highly skilled workforce. Graduates from top educational institutions contribute significantly to data centre and IT operations.

Final Words

Tech-enabled offices in Bhubaneswar and other Eastern cities are pivotal to the region’s growth.

Mixed-use developments such as iHub Tech Park provide Grade-A office infrastructure for IT companies, MNCs, and global business teams. These office park environments enable businesses to grow through modern facilities and flexible workspaces. Moreover, established tech parks promote investor confidence and create a synergistic ecosystem from both office and data centre perspectives.

Over the past decade, there has been a rise in large IT companies establishing operations in Bhubaneswar, creating demand for modern office space. When combined with the continued growth of data centres, this positions the city as a comprehensive tech destination.

FAQs

1. Why is Eastern India emerging as a tech hub?

Eastern India offers lower costs, supportive policies, growing digital demand, skilled workforce, better connectivity, and modern office spaces like iHub Tech Park.

2. What factors are driving data centre growth in Bhubaneswar?

Key drivers include rising digital demand, government incentives, infrastructure upgrades and increasing presence of IT and enterprise operations.

3. How does Bhubaneswar support IT and tech companies?

Tech-enabled offices, affordable real estate, skilled talent, and modern infrastructure like iHub Tech Park make Bhubaneswar ideal for global IT firms.

4. Are data centres in Eastern India cost-effective?

Yes, land, construction, and operational costs are 20–40% lower than Tier-1 cities, while connectivity and talent access remain strong.

5. What role does iHub Tech Park play in growth?

iHub Tech Park provides premium office infrastructure, attracting IT firms and startups, creating a thriving ecosystem for digital services and innovation.

6. Why is connectivity important for data centres here?

Low-latency networks, fibre expansion, and upcoming submarine cables ensure reliable operations, supporting enterprise IT, cloud and hyperscale data centre requirements.