The data center strategy of Reliance Jio comes against the backdrop of the government forecasting that the digital economy of India will rise to $1 trillion by 2025.
Two people aware of the development said that Reliance Jio Infocomm Ltd, India's largest wireless operator, plans to construct a data center in Uttar Pradesh with an investment of about $950 million.
This data center could be operated by a solar power plant of its own.
"For Reliance Jio, this is an important focus area," said one of the two individuals mentioned above, both of whom spoke on condition of anonymity.
The development was confirmed by a top minister in the state government. Sidharth Nath Singh, who heads the Ministries of Investment and Export, Micro, Small and Medium Enterprises (MSME) and Textile in the UP government, said in a statement in response to a Mint question, "For the data center, a 20-acre plot was allocated to the company, and the project will cost approximately 7,000 crores."
The center will consist of six interconnected data center buildings with a capacity of 30,000 racks and power of 200MW. Singh said in the statement that it is planned to create thousands of job opportunities in the IT (information technology) market.
The data center strategy of Reliance Jio comes against the backdrop of the government forecasting that the digital economy of India will rise to $1 trillion by 2025. The data localization requirements of the Reserve Bank of India have necessitated the need for data centers.
Queries sent on Sunday night to a Reliance Jio spokesperson remained unanswered until press time.
India has about 375MW of installed power capacity for data centers, according to the government, which could triple by 2025. There is also an investment potential of $4.9 billion by 2025 to set up the infrastructure for data centers. The Centre also aims to introduce a program to enable companies to create data center parks, including the provision of infrastructure status to make it easier to obtain incentives such as long-term credit. Fiscal and non-fiscal benefits can also be offered by the Union and by state governments.
"Furthermore, the need for data center infrastructure within the borders of the country is required by the provisions of the proposed Data Protection Act on data localization and for the protection of the country's digital sovereignty in an increasingly connected world," said the draft Data Centre Policy provided by the Ministry of Electronics and Information Technology.
Following the Yogi Adityanath-led government's industrial policy announced in 2017, which outlines initiatives ranging from subsidized energy to fiscal incentives, investors have warmed up to Uttar Pradesh.
The Adityanath government has embarked on a plan to make UP a $1 trillion economy by 2024 with the goal of bringing UP to an unprecedented amount. The state has defined five sectors to accomplish this goal: infrastructure development, manufacturing, agriculture, urban development, and service sectors, Singh said in the statement.
Source- Hindustan Times