Indian government aims to boost investment in data centres

These efforts are part of a larger campaign to expand internet access for the country’s more than 750 million internet users

According to JLL, there was an influx in global data centre investment in 2021. It went up to 60 percent after there had been efforts to diversify portfolios and gain exposure to assets exhibiting long-term growth prospects.

As part of its 2022 budget announcements, the Indian government has indicated its support for such efforts, which include 5G auctions and connecting villages via fibre optic cables.

These efforts are part of a larger campaign to expand internet access for the country’s more than 750 million internet users. The new policy will change how the government classifies data centres. It will now be a part of the infrastructure sector, allowing operators to raise long-term credit at cheaper rates.

Rachit Mohan, head of the data centre advisory – India and co-head, office leasing advisory – Mumbai at JLL says “As the data centre industry is capital intensive and investments have a long gestation period, the move will enable domestic businesses to expand faster and make them more competitive.” He adds that “Access to low-cost, long-term funds could help data centre operators diversify across geographies.”

More: This year’s APAC data centre market at a glance

Sophos, according to Intelligent CIO, is planning for a new data centre in Mumbai, which will start construction in March. As a global leader in cybersecurity these efforts will enable organisations to meet strict data sovereignty laws and regulations necessary in banking, government, and other tightly regulated market sectors. 

Web Werks is also developing a data centre in Bengaluru. It will serve as a hub for addressing the hosting, storage, and network needs of businesses in the Southern India region. It will also act as a disaster recovery facility for enterprises across the world.

Analytics India Magazine shared that Web Werks has four strategically located data centres located in Mumbai, Pune, and Delhi NCR, as well as 3 worldwide points of presence (POPs).

India’s demand for digital infrastructure is likely to skyrocket. In the next five years, the country’s geographic location and favourable policies are expected to make it a hub for data centres serving the Southeast Asian region, according to Mint.

The Property Report editors wrote this article. For more information, email: [email protected].