Tata Communications to invest over $200 million to double data centre capacity over 3 years

New Delhi: Tata Communications plans to invest more than $200 million towards doubling its data centre capacity in India to 10 lakh square feet over three years as it bets on security and privacy needs to fuel growth in the business.

"Multinational and Indian companies are building local data centres as the Indian government and consumers demand keeping data within the boundary of the country for security and privacy reasons. It will drive local demand for data centres," said Rangu Salgame, chief executive officer, growth ventures, at Tata Communications.

He said companies such as Tata Communications, which owns an undersea cable network and provides wholesale communication and data centre services, are betting big on India's data centre market, which is growing 20 per cent annually.

The Tata Group firm leads the segment with a 31 per cent share in the country and counts a global social media company among its customers, Salgame said. The service provider opened its 44th data centre in New Delhi's Greater Kailash area on Wednesday. It has data centres in Mumbai, Bangalore, Kolkata and Pune and plans to open two more.

Besides security and privacy concerns, Salgame said that Tata Communications' next round of investment in India will be based on data growth in the country, fuelled by the adoption of smartphones, cloud, big data analytics and trends such as bring your own device and social networking. "The exciting part about the Indian market is that the market is still in its early stages. Enterprises will grow further and will invest more for agile and flexible cloud infrastructure," Salgame said.

He said the enterprise segment will benefit the most from 4G services, considering the high bandwidth Internet capability supported by such services. "High-speed services would allow CIOs (chief information officers) of the industry to enable high-end applications such as financial apps, driving the bringyour-own-device trend in the country."

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.