Meta, the company behind Facebook, is exploring the possibility of opening its very first data centre in India, aiming to support the surging popularity of its short video feature, Reels.

What Happened: With India being a major market, a feasibility study is on the cards for early 2024, hinting at a “cache-focused” data centre that might use 10-20 megawatts of power.

While the specifics of investment and location remain under wraps, setting up such a facility could cost Meta anywhere from ₹500 to 1,200 crore, given the hefty price tag of high-quality, reliable data centres in India.

Instagram Reels, introduced in India in July 2020 right after TikTok‘s exit, has seen explosive growth, becoming a favourite for short video enthusiasts and placing Instagram at the top of the app download charts in 2023.

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Why it matters: Meta’s strategy doesn’t stop at Instagram; Reels made its way to Facebook in 2022, broadening the short video experience across its platforms. This move is part of Meta’s larger plan to improve user experiences, especially with the introduction of generative AI features.

Currently, Meta operates 22 data centres globally, with just one in the Asia Pacific located in Singapore. The planned investment in India is part of a larger capital expenditure for 2024, aimed at beefing up server capacity and data centre infrastructure.

India’s data centre industry is booming and is expected to draw $10 billion in investment in the coming years, fueled by data consumption and a supportive regulatory environment. Meta’s efforts include not just a potential data centre but also expanding its network footprint within India, indicating a significant focus on enhancing connectivity and service quality in one of its most vital markets.

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