"Uttar Pradesh Government Aims for ₹30,000 Crore Private Investment in Data Center Hubs"

The Uttar Pradesh government is setting its sights on attracting substantial private sector investments amounting to ₹30,000 crore to bolster the data center infrastructure in Noida. A data center serves as a centralized facility that consolidates shared information technology activities and equipment, facilitating the storage, processing, and dissemination of data and web applications.

India has been facing a shortage of robust data centers, leading to a situation where most domestic data is stored on servers located overseas, primarily in the United States. This reliance on offshore servers exposes critical data in sectors such as banking, social media, retail, tourism, and healthcare to potential cyberattacks and manipulation.

Notable domestic and international firms, including the Hiranandani Group, Adani Group, NTT Japan, and Web Werks, have already embarked on projects valued at ₹20,000 crore. These initiatives have gained momentum as the proposed data center hub aligns with major infrastructure projects, including the Noida International Airport, International Film City, Yamuna Expressway, and Buddh International Circuit, thereby offering industrial units in the vicinity seamless connectivity and accessibility.

The Yamuna Expressway Industrial Development Authority is actively encouraging private sector investments in data center projects by offering a range of incentives.

The domestic data center sector is poised to attract investments of approximately ₹1.5 trillion over the next five to six years, a significant surge that could generate an additional 5,000-megawatt capacity. This represents a sixfold increase from the current installed capacity.

In a statement, a government spokesperson emphasized, "To transform UP into a trillion-dollar economy and strengthen the state's role as a key growth driver for India, the government is focusing on industrial development, including data centers."

The expressway authority will be conducting auctions for industrial plots in Sector 28, specifically designated for data centers, through the Nivesh Mitra portal. These plots will be subject to premium rates ranging from ₹28 crore to ₹176 crore, with registration fees ranging from ₹2.81 crore to ₹17.67 crore.

According to reports, India is on the brink of generating a trillion-dollar economic value from the digital economy by 2025, and the data center ecosystem is expected to play a crucial role in both benefiting and driving this digital growth.

Last year, the Hiranandani Group successfully launched the first phase of its data center project in Greater Noida. This ₹5,000 crore data park was developed by Yotta Infrastructure, Hiranandani's data center subsidiary. Chief Minister Yogi Adityanath had previously highlighted that the state was poised to become the country's data center hub, citing a superior industrial policy and a pro-investment approach.

BS