Japan's NTT to invest $2 bn in India to set up data centres over next 4 yrs

Japanese company NTT on Wednesday said it will invest USD 2 billion (over Rs 14,000 crore) in India to build data centres.

It will be building new campuses in neighbouring Navi Mumbai, Chennai and Noida, and also augmenting capacities at its existing facilities in the financial capital and Bengaluru.

Data consumption has gone up in the country and more companies are adopting the cloud-based approach as well. Additionally, local regulations which insist on data localisation require such facilities. Competition in the space has increased manifold with huge investment commitments being done by names such as Adani Group and Hiranandani Group.

"We will invest USD 2 billion in India for building data centres over the next four years," the company's chief executive for India Sharad Sanghi told PTI.

Sanghi said a part of the commitment will be invested in building solar and wind power generating facilities because the company is committed to have its own captive power generation capabilities from renewable power at the same level as the consumption requirement in five years.

When asked about competition and its impact, he said there can be pricing pressures in the near to medium term but eventually the data centre industry will lead to consolidation, just like the telecom sector.

Clients, which include global hyperscalers like the companies offering cloud services and deal with sensitive data because of localisation requirements, do not mind paying for the services, he added.

The company will look at acquisition opportunities "opportunistically", and any such move would lead to the overall investment going above USD 2 billion, Sanghi said.

When asked whether the company will be interested to takeover data centre assets in Dhirubhai Ambani Knowledge City in Navi Mumbai, he said it will not be interested because the assets are under resolution before the National Company Law Tribunal (NCLT).

The company has announced the inauguration of a new 35 MW centre at its existing facilities in suburban Chandiwali, which takes the overall capacity at the facility to 100 MW.

Sanghi said at present, there are three buildings in the campus and it will add an equal number as part of the new investment plan and added that the facility is also host to a cable landing.

NTT is "very bullish" on India, one of the fastest growing markets for it globally.

It inaugurated a solar power plant in the Solapur district of Maharashtra, Sanghi said, adding that the overall investment for the two facilities inaugurated on Wednesday in Solapur and Chandiwali is USD 150 million.

The company is also looking at a solar and wind power facility in Karnataka.