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 * Data Center


DATACENTER INDUSTRY SEEKS EASE OF DOING BUSINESS

While the demand for data centers is rising at a meteoric pace, the road to
making a data center operational is paved with lots of challenges. As data
center players increase capacity, they face a juggernaut of approvals and
permissions from various authorities which slows them down.

 * Bhragu Haritas
 * ETCIO
 * March 16, 2022, 09:01 IST

 * 
 * 
 * 
 * 
 * 
 * 
 * 
 * 

For the Indian government’s aim of achieving a $1 trillion digital economy, data
centers are going to play an important role. Presently, India has around 499 MW
installed power capacity for Data Centers and is projected to grow to 1007 MW by
2023.

The Draft policy on National Data Center intends to accelerate the growth in the
projected Data Center capacity in the country with a capacity addition of 2000
MW by 2027.

In December, the TRAI had floated a consultation paper to explore a regulatory
framework for data centers, content delivery networks and internet exchanges.



According to the TRAI, “For any digital communication network to function
smoothly, it is imperative to have a regulatory framework for interconnection
between various players, which is fair and just and gives equal opportunities.”

According to Sunil Gupta, CEO & Co-founder, Yotta Infrastructure,while the
government has come up with ideas for offering incentives, what the data center
industry needs more are the non-fiscal benefits.

Within the DC industry, the demand and supply gap is expected to go up in the
next 7-10 years and India needs to build much more capacity than it currently
has today.

In order to achieve that capacity, Gupta believes, one of the most key elements
happens to be the Ease of Doing Business. Today, In India, a new Data Center
requires close to 40 approvals/permissions from different central and state
Governments’ departments before beginning operational.

The process of getting approvals begins when an operator starts sourcing the
land. Since Yotta Infrastructure is backed by real-estate giant Hiranandani
Group, it certainly has experience when it comes to maze through the entire
juggernaut of getting land approvals.

For some international DC operators (building capacity in India), there have
been instances where only the process of land allocation took more than a year.



In Singapore on the other hand (Asia’s top DC location), it now takes less than
six days in Singapore to register a property for building a data center.

Once the land approval process is completed, the next step is to get approvals
for power feasibility, which again requires multiple checks from multiple
authorities.

Then the approval saga reaches to the municipal level where the DC operators
have to get building layout approvals. There are several other approvals
including power, fire, environment, the list keeps on going.

According to Gupta, the main issue with approvals is that all of them have to be
gained from different authorities. (Central, State, and local district).

Yotta has a dedicated real estate and liasoning team of four senior people who
are responsible for ensuring all approvals and transactions are completed in
time.

“All bodies have got their own way of working and they are actually siloed to
each other and it leads to a whole lot of delays. I have seen our teams
struggling to get all these things done and when we see that the foreign
operators are coming and trying to do something and not being able to start a
project for two years, we know that the problem is genuine,” said Gupta.

To hasten the DC development process, Gupta believes the government should
either create a single window mechanism for getting approvals or windows at
different levels (central, state, district) which also cooperate with each
other.

Durgesh Pandey, CFO, Web Werks Data Centers also echoes the same thoughts, for
land acquisition, he said, guidelines should be implemented for a single-window
clearance to fast-track projects for smaller data centers that can boost the
development of data centers in the underserved markets.

He also suggested that to enable ease of doing business, Land, Power, and
Networks should be given special attention.

In its recent annual Budget, GoI has already taken the first step to declare
‘Infrastructure Status to Data Center, which will enable easier credit flow for
the sector at benign terms.

Pandey also listed some of the fiscal benefits that would be welcomed by the
industry.

He said, the capital subsidy should be provided for MEP (Mechanical, Engineering
and Plumbing) cost upfront and not deferred over the period of years.

Pandey also suggested there should be interest subsidy on borrowed capital for
setting up the Datacenter, upto 50 to 60 percent for the first 5-7 years.

Building capacity is a priority at the moment

Datacenters are power guzzlers, sometimes consuming more energy than an entire
city. Therefore, clean energy for datacenters is something both
environmentalists and green energy advocates have been battling for.

As of now there is no regulatory regime in India mandating green energy usage in
datacenter operations, making it completely voluntary.

While green energy is on every DC operator’s mind, it has taken a back seat as
the priority at the moment is increasing capacity.

Talking about why there hasn’t been a mandatory rule in place for pushing
greener data centers, Gupta said, “India’s total DC capacity at the moment is
just 400MW and should touch 2500MW in the next 10 years. While green is a good
objective which everybody will start going for when you start reaching those
levels of consumption of power, today everybody is just rushing to build more
and more capacity because of the demand-supply gap.”

Gupta also believes once the overall industry’s capacity reaches 1000MW
benchmark, and the huge power consumption figures catches everyone’s attention,
then more development could be seen in this space to switch towards greener
alternatives.


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HIRANANDANI OPENS UP RS 30,000 CRORE WAR CHEST FOR DATA CENTER UNIT

The investment could position Yotta as one of the largest data center players in
the country

 * Varun Aggarwal

Click Here to Read This Story
 * 
 * 
 * 
 * 
 * 
 * 
 * 
 * 

Real estate player Hiranandani group is all set to double up on its investment
plans for its data center unit Yotta where the company is expecting windfall
gains.

The two-year old venture has not only setup India’s first Tier IV data center in
less than a year’s time at Mumbai but is already starting to replicate the
initial success in other cities as well.

“The demand has been overwhelming for our first data center in Mumbai. Being the
only Tier IV certified data center has also played a big role in this. It gives
us more confidence to expand at an even more rapid pace,” Sunil Gupta, CEO,
Yotta, told ETCIO.



“One building of the size we are making costs us about Rs 1,200 crore. We are
making five such in Mumbai, six in Noida, six in Chennai, three in Pune, three
in Calcutta and one in Gujarat. Idea is to start the first building as a risk
investment and then rapidly scale from there. Overall the investment could well
surpass Rs 30,000 crore over the next 5 years,” Gupta said.

When it was setup in 2019, Hiranandani had envisaged an investment of Rs 15,000
crore for a period of 5-7 years to scale up Yotta. However, within two years of
incorporation, the venture is already doubling up its investment plans.

Indian data center market would require $3.7 billion over the next three years
to meet the industry requirement for six million sq ft of development, according
to a report by JLL India. The report highlights that in 2020, Indian data center
industry saw a record 102 MW absorption, the second-highest compared to key
markets in Europe and the Americas.

“Large cloud players are increasing their presence in the world’s second-largest
user market. At the same time, the advent of the pandemic has prompted a faster
shift to colocation from the traditional captive IT infrastructure,” the report
says.



According to Gupta, the biggest growth is coming from the shift towards
digitization that’s being observed since the beginning of Covid-19 in early
2020. “The growth was already quite phenomenal pre-Covid but Covid has fuelled
the demand for cloud services manifold leading to a massive growth in demand for
data center space,” Gupta explained. Some of the biggest customers for Yotta are
hyperscalers who are eyeing not just a few racks or a floor but entire data
center buildings in one go, Gupta said.

Hyperscalers is a term used for large cloud services players such as AWS,
Google, Microsoft Azure and IBM.

“Delhi was not in the initial plan but we already have an entire building taken
up by a client even before it is up and running. UP government has been very
helpful in terms of approvals etc. Today we are building our first data center
in UP but we have bought enough land there to be able to scale it to 6 data
centers there. To support that, we are also building a substation of 300 MW
that’ll be sufficient for 6 data centers there,” Gupta said.

Yotta is banking on parent Hiranandani group for acquisition of land for setting
up large data center parks in various parts of the country instead of picking
space for one data center at a time. Gupta says that allows the company to setup
its captive power stations for providing backup power and the negotiating power
that is necessary in the highly competitive market


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EQUINIX TO HIRE 500 IT PROFESSIONALS IN BENGALURU FOR NEW COE

The new Center of Excellence will be the US firm’s second big investment in
India after it bought the India operations of GPX Global Systems in September
for $161 million.

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Colocation data center company Equinix has started scouting for space to open
its Global Center of Excellence (GCoE) in Bengaluru. The company plans to hire
approximately 500 IT professionals in Bengaluru by the end of 2024.

“We have got the investment committed now. Soon, we will announce the location
and leadership of this CoE. We have already started the hiring process for the
center. Bengaluru, a key hub in India's digital economy, is going to play a
significant role in creating world-class products,” Milind Wagle, Chief
Information Officer, Equinix told ETCIO.

The GCoE will contribute to the development of innovative, automated and
scalable digital technologies to improve the digital infrastructure resilience
of Equinix’s customers and employees.



Equinix made its official India foray in September through the acquisition of
the India operations of GPX Global Systems in September for $161 million. The
deal included the acquisition of two Mumbai-based data center buildings of GPX.

“The opportunity ahead in India is significant. We saw a lot of pent up demand
in India from our existing customers and given some of the new regulations
around data residency in India, we see a lot of growth opportunity here,” Wagle
said.

India has turned into a popular destination for some of the largest data center
companies across the world. The move towards digitization, a booming startup
ecosystem and several e-governance initiatives are all playing a big role in
boosting demand for data center space in the country. According to Frost &
Sullivan, India is anticipated to become a $2 trillion digital economy by 2030,
growing at a 21% compound annual growth rate (CAGR). It also forecasts that 40%
to 50% of Indian businesses will be taking a containerized hybrid multicloud
approach for deploying applications by 2025.

The U.S. headquartered data center company has IT talent hubs in Dallas, Silicon
Valley, Singapore and Warsaw.

An external company has already been hired by Equinix to do a location analysis.
The company assessed its talent and skillset needs, accessibility to other
Equinix locations, and ease of doing business. Through that process, Bengaluru
emerged as a preferred location.



As Equinix grows its business globally, it will be critical to modernise its own
business technology infrastructure, deploy more cloud technologies, develop more
data & analytics programs to provide insights to the stakeholders. All those
capabilities will require IT to scale as well for the rest of the company.

The company is making this investment to build that capability to support its
long-term growth strategy.

The GCoE will enable business strategy for Equinix and work on all critical
business priorities for the company. “We are looking at all the leading emerging
technologies deploying cloud infrastructure platforms like AWS, GCP, Business
technology platforms like Salesforce, ServiceNow, and Oracle ERP Cloud,” Wagle
said.

Equinix now operates 49 IBX data centers in Asia- Pacific across 13 metros in
Australia, China, Hong Kong, India, Japan, Korea and Singapore.

Earlier this year, Equinix committed to becoming climate-neutral by setting
science-based targets for emissions reduction across its global operations and
supply chains by 2030.


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