After Mumbai, Chennai Emerges As India's Second Data Centre Hub With Rs 8,300 Crore Investment In New Projects

After Mumbai, Chennai Emerges As India's Second Data Centre Hub With Rs 8,300 Crore Investment In New ProjectsA data centre. (Representative Image | Dean Mouhtaropoulos/Getty Images)

With new investments to the tune of over Rs 8,000 crore, Chennai is set to become India's second major data centre hub after Mumbai, reports Hindu Businessline.

According to the report, Chennai already has a number of smaller data centres and is now witnessing investment commitments of Rs 8,300 crore by three large companies.

The three companies - Hiranandani group's Yotta Infrastructure, HDCI Data Centre Holdings and Singapore-based ST Tele Media - have recently signed memorandums of understanding (MoUs) with the Tamil Nadu government for building data centres in the city.

While Yotta Infrastructure will invest Rs 4,000 crore, HDCI Data Centre Holdings and ST Tele Media will invest Rs 2,800 crore and Rs 1,500 crore respectively.

“We expect many more data centre companies to follow suit,” a senior government official was quoted as saying.

According to the report, the reasons behind Chennai emerging as a favourable spot for setting up data centres include the submarine cable landing stations in the city and various governments wanting to have data centres in India. Besides, close proximity of Chennai to key Asian cities also gives it an edge.

Adequate availability of real estate and power, which are critical for setting up a data centre, is also a contributing factor in the city's increasing role in the data centre business.