Yotta Infrastructure to invest Rs 7,000 crore to set up datacenter park in Greater Noida

Hiranandani group firm Yotta Infrastructure on Tuesday it will invest up to Rs 7,000 crore in Greater Noida to set up a datacenter park.

Yotta Infrastructure, the datacenter arm of the realty-focused group, has received approvals to build a hyperscale datacenter park on a 20-acre campus from the state government, it said in a statement.

The park will consist of six interconnected datacenter buildings which will offer 30,000 racks capacity and require 200 MW of power, the statement said, adding that the estimated cost for the same is between Rs 6,000-7,000 crore.

The construction for the first building will commence in December 2020.

Niranjan Hiranandani, Co-founder and Managing Director of the Hiranandani Group said, “Yotta's vision to support the Digital India initiative just received a big boost with the inclusion of our Northern India campus that will enable us to address India's growing need for data sovereignty”.

Yotta had in July launched a Rs 1,100-crore facility on the outskirts of the financial capital adjacent to an upcoming realty project of its own, and announced an intention to invest over Rs 15,000 crore over the next decade in the business.

The company had also announced its memorandum of understanding with the Tamil Nadu government for setting up a campus in Chennai at an investment of Rs 4,000 crore (approximately USD 541 million).

It can be noted that competition in the datacenters business is getting intense, with new investment announcements from the likes of Adani Group, as data consumption increases in the country because of the pandemic and a greater adoption of cloud solutions.

Industry players are fearing that there can be margin pressures for the next few years before consolidation sets-in.

The group's chief executive Darshan Hiranandani said this will be the first hyperscale datacenter in the national capital region which contributes 10 per cent of Indian gross domestic product (GDP) for which construction will begin by December this year.

“We expect our NCR campus to be operational with the first building before July 2022. It was a very natural choice for us to look at NCR to set up our third facility after Navi Mumbai and Chennai, given the growing needs of enterprises and intentions of hyperscale cloud service providers for expanding their availability zones in this region,” Yotta's chief executive and co-founder Sunil Gupta said.

Yotta is a managed datacenter service provider that designs, builds, and operates large-scale hyperdensity datacenter parks in Navi Mumbai, Chennai and Delhi.