STT GDC India signs MoU with TN Govt to invest up to ₹1,900 cr for data centre expansion

Co-location data centre services provider, STT GDC (ST Telemedia Global Data Centres) India, announced on Tuesday that it has signed a memorandum of understanding (MoU) with the Government of Tamil Nadu. The purpose of the MoU is to invest up to ₹1,900 crore in the state to expand its data centre capacity.
 
STT GDC India is a majority-owned subsidiary of ST Telemedia Global Data Centres, Singapore. It is one of India's oldest data centre operators and currently has approximately 45 MW of operational capacity in Chennai, Tamil Nadu.
 
The STT Chennai 2 facility, located in the Ambattur campus, is one of India's largest operational data centres, covering over 4 lakh sq. ft. and boasting an impressive 25 MW critical IT load capacity. The company plans to create additional data centre capacity of up to 80 MW critical IT load in multiple phases over the next 5 to 7 years at suitable locations in the state.
 
According to a statement, the MoU is expected to drive significant growth in the data centre space, create employment opportunities, and contribute to the overall development of the state's digital infrastructure.
 
“We are confident that this collaboration will not only enhance our operational capacity but also contribute to the overall development of the digital infrastructure in Tamil Nadu. Together, we're laying the groundwork for innovation and progress that will benefit businesses and communities alike,” said Sumit Mukhija, Executive Director & Chief Executive Officer of STT GDC India.
 
An Avendus Capital report published in June last year stated that data centres in India are growing at a compounded annual growth rate (CAGR) of nearly 40%. The report predicts that by 2025, India will have a data centre capacity of around 1,700 MW, thanks to investments worth $5 billion. This growth is driven by the exponential increase in data consumption and storage, governmental focus on data localisation, and the need for high bandwidth.
 
Mumbai and Chennai are the top choices for data centre players to establish their presence due to their strategic geographic location. However, analysts argue that Chennai has an advantage over Mumbai due to its strong undersea cable network, abundance of IT and non-IT talent, diversified business ecosystem, and lower set-up and operational costs.