Meta Platforms Considers First Data Centre in India to Support Reels Growth with an Investment of ₹500-1,200 Crore

Meta Platforms, the parent company of Facebook, is reportedly considering establishing its inaugural data centre in India to cater to the burgeoning demand for its short video feature, Reels, in the country. According to a report from Moneycontrol citing sources, Meta is poised to commence a feasibility study for the project in the first quarter of 2024.

The potential data centre, projected to be a cache-focused facility with a capacity of 10-20 megawatts, is anticipated to require an investment ranging from ₹500-1,200 crore. While the precise location and investment details remain undisclosed, experts suggest that Meta's investment could align with the average cost of setting up a Tier-4 data centre in India.

A local data centre in India is expected to enhance user experience, particularly as Meta endeavors to introduce generative artificial intelligence (AI) features across its platforms. Instagram Reels, introduced in India in July 2020 following the ban of TikTok, has witnessed significant traction, positioning India as a crucial market for Meta's short video offerings.

Sensor Tower's report highlights Instagram's ascension as the most downloaded Android app in India in 2023, underscoring the platform's popularity fueled by TikTok's ban. To capitalize on this success, Meta expanded Reels to Facebook in 2022, further amplifying its presence in the Indian short video space.

Moreover, Meta's move to establish a data centre in India aligns with the burgeoning growth of the country's data centre industry. With investments projected to reach $10 billion within the next three years, driven by escalating data consumption and regulatory advancements, India presents a compelling landscape for data centre expansion.

Currently, Meta operates 22 data centres worldwide, with its sole facility in the Asia Pacific region located in Singapore. The potential establishment of a data centre in India underscores Meta's commitment to bolstering its infrastructure to meet the evolving needs of Indian consumers and capitalize on the country's burgeoning digital market.

Meta Platforms Considers First Data Centre in India to Support Reels Growth with an Investment of ₹500-1,200 Crore