Will Hyd emerge as hub for data centres?

What is a data centre?

Data Centre is a dedicated secure space within a location where computing and networking equipment is concentrated for the purpose of collecting, storing, processing, distributing or allowing access to large amounts of data. A data centre facility contains power subsystems, uninterruptible power supplies, ventilation, cooling systems, fire suppression, backup generators, and connections to external networks. The main types of data centre are cloud, enterprise, and colocation. They are classified based on their usage of technologies for computing and storage, space used, and energy efficiency.

Hyderabad: With its name firmly etched in the annals of the India's information technology (IT) sector, Hyderabad, the City of Pearls, is now likely to emerge as a global hub for data centres.

Data centre segment took roots in the city way back in 2008 when CrtlS established its first data centre. Based out of the city, CrtlS has since emerged as the Asia largest rated Tier-IVhyperscale data centre provider.

Meanwhile, several global giants and other companies selected Hyderabad for setting up their data centres. Software giant Oracle opened its data centre in the city in June last year. Singapore-based STT Global Data Centres operates a data centre in Hyderabad. Pi Data Centres also hasitsown facility here.

This segment in the city received a big boost whenecommerce major Amazon announced its plans to set up multiple data centres in the city with an investment of $2.77 billion (Rs 20,761 crore).This massive investment by Amazon Web Services (AWS) is the single-largest FDI into Telangana. Indian ecommerce major Flipkart operates green data centre whilediversified Adani Group announced plans to establish data centre infrastructure in Hyderabad.

"Hyderabad is an ideal location for data centres as the city is in non-seismic zone and also not prone to natural calamities. Data centre space is the next big thing for the city which is likely to emerge as global hub for data centres," L Maruti Sanker, Managing Director, 7Seas Entertainment Ltd, told Bizz Buzz. Apart from the private companies, Government-owned companies also chose Hyderabad for setting up their data centres. The National Payment Corporation Limited (NPCL), the umbrella organisation floated by banks for operating retail payment system, laid foundation for Rs 500- crore, Tier-IV smart data centre in the city in July last year. Located in Narsingi village in Ranga Reddy district, the data centre has been designed to provide a host of services under the Digital India initiative. The other government institutions like SBI, Railtel, and National Data Centre also have their data centres here. The Telangana government rolled out its Data Centre Policy way back in 2016 and offered incentives. It is the first State in the country to come out with such a policy. Though there was no positive response initially, the State started attracting investments into this key space. A recent research report released by Crisil Research has estimated that the Indian data centre industry will login a rapid growth of 25-30 per cent annually to reach $4.5-$5 billion by the financial year 2025. The sector crossed $1 billion mark in the FY19. "The incentives and policies from the State government are encouraging large organisations to choose the city for their data centres," said Maruti Sanker.

Hyderabad is an ideal location for data centres as the city is in non-seismic zone and also not prone to natural calamities. Data centre space is the next big thing for the city which is likely to emerge as global hub for data centres

— L Maruti Sanker, MD, 7Seas Entertainment Limited