Uttar Pradesh Aims for Rs 30,000 Cr Investment in Secure Data Storage
The Uttar Pradesh government is making strides towards becoming a hub for secure data storage in India. With the increasing presence of companies establishing a base in the country, the state is looking to attract private players to set up eight data centres at a total investment of about Rs 30,000 crore. This move comes as concerns grow over offshore data storage and the need for robust data protection measures.
Facilitating Land Clearances for Data Centre Projects
In order to facilitate the establishment of these data centres, the Uttar Pradesh government is taking proactive steps to streamline the process of land clearances. The projects, totaling 900 megawatts (Mw) in capacity, are expected to be located near Noida, a strategic location known for its proximity to the national capital region and its robust infrastructure.
Private Players Investing in Data Centre Projects
Several major companies have already shown interest in investing in data centre projects in Uttar Pradesh. Entities such as the Hiranandani group, the Adani group, NTT Japan, and Web Werks have either launched or announced data centre projects worth Rs 20,000 crore with a combined capacity of 600 Mw. These investments highlight the growing importance of secure data storage in the digital age.
The Significance of Data Centres
A data centre serves as a central hub for storing, processing, and disseminating information related to various IT activities. As companies increasingly rely on digital technologies for their operations, the need for secure and reliable data storage solutions has become paramount. Data centres play a crucial role in ensuring the efficient management and protection of critical data assets.
India’s Growing Colocation Data Centre Capacity
According to a report by real estate consultant Cushman & Wakefield, India’s colocation data centre capacity stood at 977 Mw across the top seven cities in the second half of 2023. The report also projects a need for additional colocation data centre capacity of 1.7-3.6 gigawatts (Gw) by 2028, driven by rapid digital adoption and the generation of vast amounts of data. This underscores the importance of expanding data centre infrastructure to meet the growing demand for data storage and processing capabilities.
Addressing Cybersecurity Concerns
One of the main reasons behind the push for domestic data centres in India is to address cybersecurity concerns related to offshore data storage. With sensitive data pertaining to banking, social media, retail, tourism, healthcare, and other sectors being stored on servers located outside the country, there is a heightened risk of cyberattacks and data breaches. By establishing secure data centres within the country, there will be greater control and protection of critical data assets, safeguarding them from potential security threats.
Boosting Economic Growth through Data Centre Parks
The establishment of data centre parks in Uttar Pradesh is expected to have a positive impact on the state’s economy and contribute to India’s overall GDP growth. By becoming self-reliant in data storage, both Uttar Pradesh and the country as a whole will be able to strengthen the domestic data centre ecosystem and enhance data security measures. This, in turn, will create opportunities for job creation, technology innovation, and economic development in the region.
Ensuring Uninterrupted Power Supply for Data Centres
To support the operations of data centre parks in Uttar Pradesh, the state government has taken measures to ensure uninterrupted power supply. Data centre parks will have the option to avail of energy supply from two grids, with the costs being funded either by the UP IT and electronics department or the private data centre investor. This dual grid power supply arrangement aims to enhance the reliability and efficiency of data centre operations, mitigating the risk of power outages and disruptions.
Expansion of Double Grid Power Supply Policy
In a bid to attract more private investment in data centre projects, the UP Data Centre Policy was recently amended to expand the scope of the double grid power supply provision. Originally, the policy allowed for double grid power supply to the first three data centre park projects only. However, with the revised policy, the ambit of the double grid power supply has been extended to encompass a total of eight data centre parks. This move is aimed at incentivizing more private players to invest in data centre infrastructure in Uttar Pradesh, thereby fostering a conducive environment for business growth and innovation.
Future Outlook for Colocation Data Centre Capacity in India
India’s current under-construction colocation capacity addition stands at 1.03 Gw for the period 2024-2028. Colocation data centres offer physical infrastructure to secure servers, which are then connected to high-speed networks and leased out to businesses. This model provides a cost-effective and scalable solution for companies looking to outsource their data storage and processing needs, enabling them to focus on their core business activities while ensuring the security and reliability of their data assets.
In Conclusion
The push towards establishing secure data storage infrastructure in Uttar Pradesh reflects the state government’s commitment to promoting digital innovation, economic growth, and data security. By attracting private investment in data centre projects and expanding the double grid power supply policy, Uttar Pradesh is positioning itself as a key player in the data storage industry in India. With the increasing digitization of the economy and the rising demand for data processing capabilities, the establishment of data centre parks in the state will not only boost the domestic data centre ecosystem but also contribute to the overall development and prosperity of the region.
