UP Aims for Investment in Secure Data Storage

• 11 Sep 2024

Why in News? 

Recently, the Uttar Pradesh government has targeted a Rs.30,000 crore investment to boost secure data storage by establishing data centers.

Key Points 

• Investment Target: Uttar Pradesh aims to attract private players to set up 8 data centers with a total investment of Rs.30,000 crore.
  
  • The data centers will have a combined capacity of 900 MW and will be located near Noida.
  • Companies like Hiranandani Group, Adani Group, NTT Japan, and Web Werks have launched or announced projects worth Rs. 20,000 crore, adding 600 MW capacity.
  • The state has allowed data centers to draw power from two grids for uninterrupted supply.
    • UP's amended Data Centre Policy now extends the double-grid supply to 8 data center parks to attract more investment.
• Significance: 
  • Data centers centralise IT activities for storing, processing, and sharing information.
    • India’s colocation data center capacity was 977 MW across top 7 cities in 2023, with an additional 1.7-3.6 GW needed by 2028 due to rapid digital adoption.
  • Offshore data storage raises security risks, exposing sensitive information (banking, social media, health, etc.) to cyberattacks.
    
    • Domestic data centers will ensure enhanced security for India's growing digital data.
• National Data Centre Capacity: 
  • India’s under-construction colocation capacity for 2024-2028 stands at 1.03 GW, providing businesses with secure server infrastructure and high-speed network connectivity.

Uttar Pradesh Data Centre Policy 2021

• Capital Subsidy: 7% up to Rs.10 crore for units over 10 years (excluding land & building).
• Interest Subsidy: 60% of annual interest, up to Rs.50 crore for 7 years for data center parks.
• Land Subsidy: 25-50% on sector rates, capped at Rs.75 crore.
• Stamp Duty Exemption: 100% on first transaction; 50% on second.
• Electricity Benefits: 100% duty exemption for 10 years; dual-grid power for the first 3 parks.