KTR writes to FM Sitharaman over placement of International Data Embassies in quake-prone Gujarat

Telangana IT and industries minister K T Rama Rao has warned the Narendra Modi government on the perils of locking International Data Embassies in a single location - “the earthquake prone” Gujarat which also "shares international border" with Pakistan.

In a missive to Union minister for Finance and Corporate Affairs Nirmala Sitharaman on Thursday, KTR raised serious objections against the 2023-24 budget proposal of establishing the Data Embassies in Gujarat International Finance Tec-City (GIFT city), near Ahmedabad.

While doing so, KTR mentioned Telangana's “proven ability of hosting Data Centres.”

“For countries looking for digital continuity solutions, we will facilitate setting up of their Data Embassies in GIFT IFSC International Finance Services Center),” Sitharaman announced in her budget speech in Parliament on 1 February.

Presenting “a logical case”, KTR detailed the huge risks involved in establishing International Data Embassies at one location that too in a state “highly prone to earthquakes.”

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“Moreover, the move might pose a security threat as the proposed location is in a State sharing border with another country,” KTR said while suggesting that interests of the client countries should also be considered while choosing the location for the Data Embassies.

The letter also highlights the advantages Hyderabad holds as an ideal location for data centers.

“Hyderabad is in Seismic Zone-II, one of the least active seismic zones in India, which makes the city an ideal location for setting up data centers. In contrast, GIFT city is located in Seismic Zone-III and is very close to Seismic Zone-IV, indicating that the region is at a high risk for earthquakes. Developing international data embassies in such an area presents potential risks and could have significant consequences for international relations if critical infrastructure is impacted,” KTR added.

The minister pointed that “after due diligence, global data center majors chose Telangana to invest in setting up their large data centers.”

“From Amazon Web Services to Microsoft Azure, Telangana is now home to several hyperscale and edge data centers.”

The Minister added that K Chandrasekhar Rao government had launched the Data Center Policy in 2016 and offered several important incentives and approval provisions to facilitate the setting up of data centers.

Access to dual power grids, low-cost power supply and a high-speed fiber network are a few such provisions. “The overall experience of the companies which have invested in Telangana has been extremely positive. Our State will be happy to provide similar support to International Data Embassies,” remarked the minister.

Further, the minister urged the Union Finance Minister to modify the budget proposal to provide multiple locations to suit individual data security requirements. KTR added that it would provide a level playing field for data infrastructure among the States.