I&O leaders planning a new data centre or evaluating a colocation site should consider four critical site selection factors
FinTech BizNews Service
Mumbai, 2 June 2026: AI is reshaping data center site selection, design, infrastructure, and operations. Ashish Banerjee, Sr Principal Analyst at Gartner, discussed how data center infrastructures are evolving to help I&O leaders plan and develop data center strategies that thrive today and in the future. He was speaking at the Gartner IT Infrastructure, Operations & Cloud Strategies Conference in Mumbai today.
I&O leaders planning a new data center or evaluating a colocation site should consider four critical site selection factors:
Power availability and interconnect: Verified utility capacity, power purchase agreements (PPAs), and reliable grid connectivity are key considerations.
Market location: Tier 2 and Tier 3 markets often offer better availability and cost efficiency.
Energy strategy: Options for on-site generation or alternative power sources.
Community and regulatory engagement: Early engagement to address regulatory, environmental, and social concerns.
“Data centers expected to support AI and other high-density workloads should be designed for liquid cooling, as AI drives extreme rack power densities, making liquid cooling technology essential for efficient, scalable growth.”
“I&O leaders must also evaluate self‑contained add‑on modules to support high‑density equipment, offering customizable power densities and flexible cooling options, including integrated cooling or connections to a water loop.”
“Water usage is becoming a critical planning factor, requiring organizations to track consumption, prioritize closed-loop cooling where feasible, and explore water reuse strategies.”
