Data Centers in India receive a massive boost
In an exclusive interaction with Surajit Chatterjee, MD, CapitaLand India, Data Center Group, ET Insights explores how the data center industry is set to receive an impetus and the next steps to make India a data center hub. Surajit also sheds light on CapitaLand’s ambitious plan behind setting up multiple Data Centers Pan India while delving into the key industry trends.
Do you think that the Indian government conferring an ‘infrastructure status’ to data centers is a step in the right direction?
The Indian Data Center industry space is expected to double up its IT load in the next year and will continue to record multiple digits growth in the future as well; such is the scale and scope of #DigitalIndia initiative that aims to transform India into a Technologically empowered country. The latest move by the #GovernmentOfIndia to confer ‘Infrastructure Status‘ to Data Centers in the #UnionBudget2022 seems to be a step in the right direction. Industry experts across the country have hailed the move.
Undoubtedly, the Infrastructure Status for Data Center is a momentous step for India. The need to set up data center infrastructure in India comes against the backdrop of #DataLocalization norms under the proposed personal #DataProtection legislation and for “protection of the digital sovereignty of India in an increasingly connected world”.
The Infrastructure status could potentially benefit the DC industry by lowering borrowing rates and increasing foreign and private capital flow. It can also further simplify the approval process for DC projects, formulate clear guidelines, and increase transparency in the Data Center segment. The coming weeks will bring in more clarity concerning the actual benefits this major announcement brings for the Data Center Industry. It is safe to assume that this strategic move by the government will bring data centers development at par with other major sectors like Transport & Logistics, Communication, Energy etc. This, in turn, will encourage DC Operators to build #DataCenterParks across the country. Data Centers act as a backbone infrastructure that helps a country embark on the Digital Transformation journey. This boost to the Data Center industry will enable Indian Enterprises to be more technologically driven and remain competitive globally.
How has CapitaLand adapted to this Data Centre trend? Also, what are your views on sustainability in Data Centers?
CapitaLand had predicted this trend and has already ramped up investments in our India Data Center business. The group will be investing 11,000 crores over the next 5-6 years in India, with plans to expand its DC footprint across major metros. We have already begun our first Data center project in Navi Mumbai (Airoli), with a capacity of 90 MW. We focus on the BTS option for Hyperscalers & Managed Colocation for Large Enterprises.
Acquiring a suitable land parcel is the first and the most critical milestone for a Data Center operator, as it sets us on a path to provide world-class services to our customers. We would also be focusing on completing the acquisition of Land Parcels in Chennai, Hyderabad, Bangalore and Noida to fulfil our vision of having a strong DC footprint in India. Our Data Centers will have a very well-defined service portfolio based on four pillars –SAFE, i.e., Security / Automation / Flexibility and Efficiency. We have given the highest priority to the physical safety of our DC buildings; our Data Centers will be Certified by Global agencies on multiple parameters.
We are glad to be an integral part of India’s Data Center growth story. At CapitaLand, we place #Sustainability at the core of everything we do. We are committed to growing responsibly, delivering long-term economic value, and contributing to our communities’ environmental and social well-being.
Progressive initiatives by the government, like the Infrastructure Status for Data Centres, State Data Center Policies, further strengthen our resolve to create great value and experiences for our Customers, Employees, Investors and Communities; by enabling us to focus on operational excellence and sustainability.