DEPARTMENT OF INDUSTRIES AND COMMERCE,
GOVERNMENT OF TELANGANA
Jayesh Ranjan, IAS
Industries & Commerce
Industry outlook, Opportunity in Telangana
With onset data localization law in India, there has been a huge increase in the demand for Data Centers located within India. The data center industry in India is expected to reach 1.5 Billion USD within 2022 growing at a CAGR of 11.4% according to a study published by MarketsandMarkets of the exports.
Currently, India’s 578 mn mobile phone (wireless) data users is the world’s second largest digital population group that has been growing annually at 20% since 2014. This has led to an unprecedented growth of data consumption and generation, creating the need for data centres to store and maintain this huge resource. Although data storage needs are currently being met by data centres across the globe, legislation on personal data privacy rights is considered to be the tipping point for the growth of the data centre industry in India. To cater to the increased demand Finance Minister Nirmala Sitharaman, in her recent budget announcement, proposed to allocate Rs 8,000 crore to set up data centres and IT parks, over the next five years.
Telangana is the first state in India to launch a Data Center Policy.
- Given the power heavy investment nature of data centres, and the power deficiency situation that exists across the country, the Government of Telangana shall establish dual power grid networks to ensure uninterrupted quality supply of electricity
- Data Centres shall be permitted to avail renewable energy under open access system from within the state after paying cost component to DISCOMs as fixed by the ERC (subject to maximum of one third of their total power requirements). This limit will be expanded to 100% by 2021.
- Power will be provided at subsidies rates.
- Given the significant consumption of fuel by backup power sources such as generator sets, the Government shall provide fuel at a price lower than the market rates to eligible players in the Data Centres Campus. Additional details on the same shall be detailed out in the operational guidelines
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