Noida-YXP Expressway to Become India's Next Tech Hub

05 Oct 2023 CW Team

The Jewar Airport is not yet operational. However, the very fact that it is under construction has made the Noida-Greater Noida-Yamuna (YXP) Expressway belt in UP a major investment destination for IT companies, telecom equipment majors and hubs.

While it is not surprising that major real estate companies are also looking to set up base, the Noida-Greater Noida Expressway and YXP's bright future will be as a tech hub. Gurgaon, Bengaluru, Hyderabad and Pune, which have high-cost and underutilized infrastructure, will soon face stiff competition from YXP and the Noida-Greater Noida expressway belt.

The region is already home to HCL, Tech Mahindra and Microsoft. The US tech giant's India Development Center is spread across 1.5 lakh square feet. Its next project is a 6.45 lakh square feet data center. UP government officials said Microsoft's investment would amount to around Rs 1,800 crore and 3,000 jobs would be created. Phone and device manufacturers Samsung, Dixon, LG, Oppo, Vivo, Lava and Optiemus are early investors in the region and are expanding.

Sunil Vachchani, president of Dixon Technologies, said his company has eight units in the area and is planning to build three more. He sees good infrastructure and Jewar airport as key factors. “We believe that Noida can become the next manufacturing hub for mobile devices and home appliances,” he said.

Hiranandani Group's Yotta is setting up a mega data center spread over 300,000 sq ft in Greater Noida, while NTT, the global IT infrastructure, is expanding beyond Mumbai, Bengaluru and Chennai to Greater Noida, again for a data center. “Good infrastructure and easy availability of land, power and other facilities,” said Shekhar Sharma, Managing Director and CEO of NTT Global Data Centers & Cloud Infrastructure India.

Availability along with the state government's one-stop customs clearance system are attractive factors." UP CM Yogi Adityanath said: “We expect the pace of investment to increase as the construction work of Jewar airport nears completion. As major tech companies set up shop on the Noida-Greater Noida Expressway and YXP, the demand for office and leisure space is growing. Ajay Chaudhary, chairman of Ace Group, whose highway infrastructure is home to information technology giant Infosys and banking major HDFC, said he is planning two new complexes, one in Noida's Sector 153 and the other on a 100-acre plot along the Yamuna expressway.

Rajeev Singh, partner and consumer sector leader at Deloitte Asia Pacific, advising the UP government on IT, technology and other investments, said the idea is also to create an ecosystem for a new manufacturing industry that uses many technologies such as medical equipment can take advantage of existing electrical and electronic component manufacturing centers. Financial professionals looking to set up data centers are also eyeing the Beltway. Vinay Arora, senior director and head of operations for the Gurgaon and Noida operations at S&P Global India, said that since 2009, Noida's headcount has grown from 50 to more than 1,400. He said the Noida-Greater Expressway and YXP will be key locations for S&P in India.

HCLTech, again one of the earliest investors in the region, has its global headquarters on a 52-acre highway-side campus that accommodates more than 25,000 people. The company said: “The city has excellent infrastructure and planning for commercial and residential projects, making it an ideal location. The upcoming Jewar Airport will help the area become more accessible”. Real estate consultants JLL and CBRE are optimistic. Samantak Das, chief economist and managing director of JLL, estimates that about 8.25 million square feet will be occupied by IT parks in the next three-and-a-half years. Abhinav Joshi, head of research – India, Middle East and North Africa at CBRE, said coordination between the Center and states is an important safeguard for investors. Ashok Gupta, president of contract manufacturer Optiemus Infra, said the company has opened two major electronics manufacturing facilities in the region and is planning new investments as the business grows. “Governance in the state is very easy and we also have access to good infrastructure, adequate workforce and required power supply. Additionally, the belt has enough land reserves, making it competitive compared to Bangalore or Hyderabad.

LG Electronics is once again one of the first investors in the region and continues to maintain an optimistic attitude. “Definitely, Noida is becoming an attractive destination for manufacturers. LG started its first manufacturing plant in Greater Noida in 1997 and we have always received good support from the local and state government. Due to increasing industrialization, the supplier base is increasing. Additionally, upcoming infrastructure, such as the dedicated Western Freight Corridor, will further boost activity. Based on our experience, we urge other manufacturers to consider Noida and Greater Noida to set up their manufacturing facilities,” said Ashish Agrawal, Senior Vice President, LG India. Noida-Greater Noida Expressway and YXP are fast becoming the next big tech hubs after Gurugram, said Sudhanshu Rai, director of real estate developer Ashrai Infra. “…with its strategic advantages, the region has the potential and ability to drive the future of technology and IT in India…With the upcoming Jewar Airport, the region is emerging as a hotspot comes irresistibly for business and residential investments.”

The Jewar Airport is not yet operational. However, the very fact that it is under construction has made the Noida-Greater Noida-Yamuna (YXP) Expressway belt in UP a major investment destination for IT companies, telecom equipment majors and hubs.While it is not surprising that major real estate companies are also looking to set up base, the Noida-Greater Noida Expressway and YXP's bright future will be as a tech hub. Gurgaon, Bengaluru, Hyderabad and Pune, which have high-cost and underutilized infrastructure, will soon face stiff competition from YXP and the Noida-Greater Noida expressway belt.The region is already home to HCL, Tech Mahindra and Microsoft. The US tech giant's India Development Center is spread across 1.5 lakh square feet. Its next project is a 6.45 lakh square feet data center. UP government officials said Microsoft's investment would amount to around Rs 1,800 crore and 3,000 jobs would be created. Phone and device manufacturers Samsung, Dixon, LG, Oppo, Vivo, Lava and Optiemus are early investors in the region and are expanding.Sunil Vachchani, president of Dixon Technologies, said his company has eight units in the area and is planning to build three more. He sees good infrastructure and Jewar airport as key factors. “We believe that Noida can become the next manufacturing hub for mobile devices and home appliances,” he said.Hiranandani Group's Yotta is setting up a mega data center spread over 300,000 sq ft in Greater Noida, while NTT, the global IT infrastructure, is expanding beyond Mumbai, Bengaluru and Chennai to Greater Noida, again for a data center. “Good infrastructure and easy availability of land, power and other facilities,” said Shekhar Sharma, Managing Director and CEO of NTT Global Data Centers & Cloud Infrastructure India.Availability along with the state government's one-stop customs clearance system are attractive factors. UP CM Yogi Adityanath said: “We expect the pace of investment to increase as the construction work of Jewar airport nears completion. As major tech companies set up shop on the Noida-Greater Noida Expressway and YXP, the demand for office and leisure space is growing. Ajay Chaudhary, chairman of Ace Group, whose highway infrastructure is home to information technology giant Infosys and banking major HDFC, said he is planning two new complexes, one in Noida's Sector 153 and the other on a 100-acre plot along the Yamuna expressway.Rajeev Singh, partner and consumer sector leader at Deloitte Asia Pacific, advising the UP government on IT, technology and other investments, said the idea is also to create an ecosystem for a new manufacturing industry that uses many technologies such as medical equipment can take advantage of existing electrical and electronic component manufacturing centers. Financial professionals looking to set up data centers are also eyeing the Beltway. Vinay Arora, senior director and head of operations for the Gurgaon and Noida operations at S&P Global India, said that since 2009, Noida's headcount has grown from 50 to more than 1,400. He said the Noida-Greater Expressway and YXP will be key locations for S&P in India.HCLTech, again one of the earliest investors in the region, has its global headquarters on a 52-acre highway-side campus that accommodates more than 25,000 people. The company said: “The city has excellent infrastructure and planning for commercial and residential projects, making it an ideal location. The upcoming Jewar Airport will help the area become more accessible”. Real estate consultants JLL and CBRE are optimistic. Samantak Das, chief economist and managing director of JLL, estimates that about 8.25 million square feet will be occupied by IT parks in the next three-and-a-half years. Abhinav Joshi, head of research – India, Middle East and North Africa at CBRE, said coordination between the Center and states is an important safeguard for investors. Ashok Gupta, president of contract manufacturer Optiemus Infra, said the company has opened two major electronics manufacturing facilities in the region and is planning new investments as the business grows. “Governance in the state is very easy and we also have access to good infrastructure, adequate workforce and required power supply. Additionally, the belt has enough land reserves, making it competitive compared to Bangalore or Hyderabad.LG Electronics is once again one of the first investors in the region and continues to maintain an optimistic attitude. “Definitely, Noida is becoming an attractive destination for manufacturers. LG started its first manufacturing plant in Greater Noida in 1997 and we have always received good support from the local and state government. Due to increasing industrialization, the supplier base is increasing. Additionally, upcoming infrastructure, such as the dedicated Western Freight Corridor, will further boost activity. Based on our experience, we urge other manufacturers to consider Noida and Greater Noida to set up their manufacturing facilities,” said Ashish Agrawal, Senior Vice President, LG India. Noida-Greater Noida Expressway and YXP are fast becoming the next big tech hubs after Gurugram, said Sudhanshu Rai, director of real estate developer Ashrai Infra. “…with its strategic advantages, the region has the potential and ability to drive the future of technology and IT in India…With the upcoming Jewar Airport, the region is emerging as a hotspot comes irresistibly for business and residential investments.”