DC policy of UP Govt Attracting investors from Singapore, Japan, South Korea & US

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The investor-friendly policies of the UP government are drawing companies, business groups and individual investors from far off places to invest in data centres.

The Information Technology (IT) and other policies of the UP government have drawn considerable interest who have shown their interest to invest in the integrated township, electronics, logistics and data centre sectors.

As a result of this, ST Telemedia Global Data Center (STT GDC) India has taken the initiative to set up a Greenfield Data Center Campus in Gautam Budh Nagar located in Noida. Along with this, big companies from the US, Japan and Korea are also expediting their projects related to IT industry in Noida.

According to officials, the Singapore-based company has proposed to build a data centre campus with an IT capacity of 18 MW with an estimated investment of Rs 600 crore. A Singapore-based company has identified a plot of about three acres in Noida to build a data centre campus.

In the second phase, an IT load data centre of 36 MW capacity will be set up with an additional investment of Rs 500 crore. After the completion of the second phase, the project is expected to attract an investment of about Rs 1100 crore and will provide direct employment to 80 people and indirect employment to about 1000 people.

The proposed data centre campus is intended to serve major cloud companies, data centre operators and large industries. Moving forward in this direction, the UP government has emphasised building a data centre. In the coming times, data storage will accelerate and for this large cloud centres will have to be built. In view of this, the proposed data centre of Noida can play a big role.

The proposed data centre campus in Noida will get the benefit of international connectivity due to its proximity to an industrial hub and Delhi. There will be a special advantage of building a data centre in Noida. Noida is close to the national capital Delhi. There is going to be an international airport in Jewar very soon.

DC Parks Evince interest

Microsoft and Japanese company NTT have also procured land to build a data centre in Noida. Several other Indian companies, including the Hiranandani Group, have decided to set up data centre parks in Noida, said UP government officials.

With all the domestic and foreign companies setting up data centres in Noida, where local people, as well as people associated with the IT industry of the entire country, will get an opportunity, government officials said.

“It is a matter of pride for Noida that Singapore based companies are interested in setting up data centres in Noida. According to IT and Electronics Department officials, the business relationship between Singapore and India is quite strong. Singapore is the 5th largest trading partner of India.

Last month, Singapore High Commissioner Simon Wong met Chief Minister Yogi Adityanath and said that there is a favourable environment for investment in Uttar Pradesh. The master plan here is very good and the logistics points here have been developed in a very systematic manner,” the officials added.

Singapore investors are willing to invest in setting up of Bundelkhand Defence Corridor, MSME, Logistics, Integrated Township and Data Center in UP. Apart from this, investors are also looking forward to invest in the area of Skill Center in Varanasi. There is also talks of setting up of data centre in Noida by two Singapore companies and another Singapore company investing in the area of Agro in Kanpur.

With the network of the IT industry being spread all over Noida, Noida is emerging as the hub of big data centres in the whole of North India. The new campus of the data centre will help further in this. Once the data center campus is built, large cloud companies, hyperscalers and large enterprise clients can be served, the official explained.

According to the IT and Electronics Department, the IT policy of the state government is drawing domestic and foreign investors to invest in the state. Under the UP Electronics Manufacturing Policy-2017, the target of investment of Rs 20,000 crore has been achieved in the state in three years by the investments made by about 30 investors in the state and more than three lakh jobs have been created.

All this has been possible due to the IT policy brought by Chief Minister Yogi Adityanath to promote investment in the IT sector and the officers were given the responsibility to remove the problems of the businessmen who want to invest in this sector.

The official further pointed out that in order to promote electronics investment in the state, the Noida, Greater Noida and Yamuna Express areas located in the National Capital Region have also been declared as “Electronics Manufacturing Zone”. Due to the above decisions of the Chief Minister, many reputed companies of China, Taiwan and Korea came forward to set up their units in UP. An overseas reputed company is now building Electronics Manufacturing Cluster in 100 acres of land in Greater Noida.

In January, the Uttar Pradesh cabinet has given its nod for a data centre policy, as the state looks to attract more investments and comply with the data localisation push advocated by the Indian government.

The policy is expected to bring in Rs 20,000 crore in investments, according to a government notification.

The policy aims at developing 250 MW of data centre industries in the state and setting up at least three private data centre parks. As per the red carpet effort to woo investors, they will be given provisions dealing with capital, interest rate, subsidies on land procurement, as well as non financial incentives.

Other DC developments in UP

Yotta Infrastructure said that will invest ₹900 crore over three-four years to set up 100 Edge datacentres.

“ We will start with 8-10 cities with each facility costing about ₹8-10 crore for basic infrastructure,” Sunil Gupta, Co-Founder and Chief Executive Officer of Yotta Infrastructure Solutions, told BusinessLine.

“Investments will go up by 4-5 times, if you add the high-end services like analytics and IoT,” added Gupta.

Anuradha Nagar

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