Uttar Pradesh govt eyes Rs 30k cr pvt investment in data centre hubs

The Uttar Pradesh government is targeting private sector investments worth Rs 30,000 crore to boost Noida's data centre infrastructure.

A data centre is a facility that centralises shared information technology activities and equipment for storing, processing, and disseminating information and web applications.

As India lacks robust data centres, domestic data is primarily stored on servers located offshore, mainly in the US. This exposes vital data in sectors, such as banking, social media, retail, tourism, and health care to potential cyberattacks and manipulation.

Domestic and international marquee firms, such as Hiranandani Group, Adani Group, NTT Japan, and Web Werks, have launched projects worth Rs 20,000 crore so far.

As the proposed hub overlooks major infrastructure projects, including the Noida International Airport, International Film City, Yamuna Expressway, and Buddh International Circuit, industrial units in the vicinity will benefit from seamless connectivity.

The Yamuna Expressway Industrial Development Authority is encouraging the private sector to invest in data centre projects by offering various incentives.

The domestic data centre domain is estimated to attract investments of around Rs 1.5 trillion over the next five to six years, which may generate an additional 5,000 megawatt capacity — a sixfold increase from the current installed capacity.

“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 centres,” a government spokesperson said.

The expressway authority will auction industrial plots in Sector 28 for data centres through the Nivesh Mitra portal. The premium levied on these plots ranges from Rs 28 crore to Rs 176 crore, while registration fees are between Rs 2.81 crore and Rs 17.67 crore.

According to reports, India is poised to create a trillion-dollar economic value from the digital economy by 2025. The data centre ecosystem will both benefit and drive digital growth.

Chief Minister Yogi Adityanath had earlier said the state was on the verge of becoming the country's data centre hub, thanks to a superior industrial policy and a pro-investment stance.

Last year, Hiranandani Group's first phase of its data centre project went live in Greater Noida. The Rs 5,000 crore data park was developed by Yotta Infrastructure, Hiranandani's data centre arm.