Uttar Pradesh Aims for Rs 30,000 Crore Investment in Secure Data Storage

The Uttar Pradesh government is embarking on an ambitious plan to attract private investment for the development of eight new data centres in the state, with a total investment target of approximately Rs 30,000 crore. As India becomes a more prominent destination for global companies and concerns about offshore data storage grow, Uttar Pradesh aims to enhance its data infrastructure. The proposed data centres, which will collectively have a capacity of 900 megawatts (Mw), are expected to be situated near Noida.

Major players including the Hiranandani Group, the Adani Group, NTT Japan, and Web Werks have already launched or announced data centre projects valued at Rs 20,000 crore, with a combined capacity of 600 Mw.

Data centres play a crucial role in centralizing IT activities and equipment for the storage, processing, and dissemination of information. 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 latter half of 2023. The report highlights a projected need for an additional 1.7 to 3.6 gigawatts (Gw) of colocation capacity by 2028, driven by rapid digital adoption and data generation.

Currently, due to the scarcity of robust data centres in India, much domestic data is stored on offshore servers, which poses risks of cyberattacks on sensitive information across various sectors including banking, social media, retail, tourism, and health. Establishing more domestic data centres would enhance data security and help safeguard against potential threats.

A state government spokesperson emphasized that the new data centre parks will foster self-reliance in data storage, improve the domestic data centre ecosystem, and contribute positively to the state's GDP.

To support these projects, the Uttar Pradesh government has facilitated the availability of energy supply from two separate grids to ensure uninterrupted power. The UP IT and Electronics Department will fund the cost of the grid with the lower tariff, while the private data centre investors will cover the cost of the other grid. Initially, the UP Data Centre Policy, notified in January 2021, provided double grid power supply to only the first three data centre parks. However, the policy has been amended to extend this benefit to all eight planned parks to attract further investment.

Currently, India has 1.03 Gw of colocation capacity under construction, set to be completed between 2024 and 2028. Colocation data centres offer physical infrastructure to secure servers, which are connected to high-speed networks available for rent by businesses.

BS