TEECL to develop 250 MW data centres across India

Techno Electric and Engineering Company Limited (TEECL), a Kolkata-based power infrastructure company, plans to build 250 MW of data centres across the country over the next five years. Plans are also in the works to expand its data centre footprint into the APAC region.

Through the Engineering, Procurement, and Construction (EPC) vertical, asset ownership, and operations and maintenance services, the company, which had a turnover of around Rs 890 crore in FY21, currently provides end to end solutions to customers across the electricity value chain.

TEECL has developed a detailed roadmap for its data centre business, utilising its EPC capabilities. It has already started the process of constructing its first 30 MW IT load data centre in Chennai, Tamil Nadu, at a cost of around Rs 900 crore. In FY 2022-23, this is expected to be completed.

The data centre in Chennai will be powered by a captive wind energy source in Tamil Nadu with a capacity of 111.9 MW. It would manage the non-IT aspects of data centres using its experience managing and maintaining large infrastructure assets. It also intends to use a cable landing station that the Tamil Nadu government is developing to provide subsea broadband connectivity links to European and Asian markets or APAC region. Apart from that, it intends to obtain data centre certifications in Tier 3 and Tier 4 cities.

Data centres are critical for India's digital progress. By 2025, the country is expected to have a data centre capacity of 1 GW, with an industry revenue of around $4-5 billion. The company is looking to capitalise on the sector's emerging opportunities, backed by its mechanical, electrical, and power(MEP) experience.

Following the pandemic, the country's internet usage consumption has increased by more than 30%. Banking, retail, e-commerce, manufacturing, and professional services, which already account for the majority of revenue in the country's server market, are expected to continue to drive demand for more internet-related services.

India has one of the world's youngest tech-savvy populations. The 5G network's deployment is also expected to boost the digital economy and increase demand for high-bandwidth networking infrastructure.

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