Chennai emerges as data centre hub, state mulling exclusive policy

Siruseri, which houses some of the top global software firms, and Ambattur, the home to many BPOs, have emerged as the favourite destinations

With over 10 companies that deal with data pledging to invest nearly Rs 20,000 crore, this Southern Metropolis is fast emerging as the new Data Centre hub in the country. Singapore-based Capital Land and Webwerks are the latest to sign an agreement with the Tamil Nadu government for setting up data centres at a cost of Rs 1,900 crore.

Six data cables landing in Chennai that boasts a bandwidth of 14.8 tbps, which is the highest in the country, the geographical location of the city and proximity to several South Asian countries are some of the reasons that are said to attract data firms to set up shops here.

Capital Land and Webwerks join reputed companies like Princeton Digital, ST Telemedia, Adaniare, Yotta Infrastructure, and HDCI Data Centre Holdings which are in the process of setting up their campuses in the city.

Siruseri, which houses some of the top global software firms, and Ambattur, the home to many BPOs, have emerged as the favourite destination for the data companies within the city.

With many companies that deal with data flocking to Chennai, the Tamil Nadu government is mulling coming up with a data centre policy to attract more investments in the centre. Under the previous AIADMK regime, the state came out with exclusive policies for e-vehicles, and electronics as many companies were ready to invest in the sector.

“Data industry is a sunrise sector for Tamil Nadu, and we have been attracting several companies in the past two years. To give a fillip to our efforts, we are now coming up with a data centre policy. Guidance Bureau of the state and the Information Technology Department are in the process of preparing a separate policy,” a senior government official told DH.

Entrepreneur K E Raghunathan, who is associated with the state’s efforts to seek more investments in the sector told Deccan Herald that many companies flock to Chennai because the per head cost while setting up a data firm is perceived to be the lowest and the output highest.

“Data is identified as a potential developing sector for Tamil Nadu to gain leadership in IT & ITES sector. We have excellent human resources in the state besides robust connectivity which is an added advantage for any company. The seed that is being sown today will come out of the ground in three years. And thanks to Covid-19, the need for data is higher now,” Raghunathan said.

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