Govt to provide infra status to data centres for cheaper finance

04 Feb 2022 CW Team

The government has decided to provide infrastructure status to data centres (Dcs). It's expected that this would enable developers to access cheaper finance and also make investments into this segment.

Many state governments have already reported incentives for firms investing in data centres and have drawn investments from multinational companies (MNCs).

According to the media reports, for 2021, the hyperscale computing cloud earnings worldwide stood at $124.7 billion, out of which India accounted for $3.8 billion in revenue.

Data centre parks would also generate employment and lead to different information technology. The government's step would boost the ambition of India to become a major data centre player in the region.

Shishir Baijal, chairman and managing director, Knight Frank India, revealed that by 2026, they expect 2,500 MW of new data centre capacity would be required in India. Uttar Pradesh, which has an established data centre policy, expects the data centre sector to employ 4,000 people directly and 20,000 indirectly.

Vivek Dahiya, managing director-India lead at Cushman & Wakefield, told the media that this is a good time for the development of data centres as the 5G launch and data localisation would further lead to their more demand in India.

Niranjan Hiranandani, Chairman and Managing Director at Hiranandani Group, said that providing infrastructure status to data centres brings data centre development to avail long-term and affordable data localization, including the safety of data sovereignty during globalisation.

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Also read: India's digital infra needs up to $23 bn investment by 2025: Report

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