CtrlS Datacenters plans Rs 2,000 crore investment

Hyderabad-based data centre provider CtrlS Datacenters is set to make investment of Rs 2,000 crore to set up three new data centres.
CtrlS Datacenters in IndiaThe new data centres in Mumbai, Hyderabad and Chennai would cater to the increasing data localisation demand from the government, Business Line reported.

“We are in the process of completing our second Mumbai data centre, which will be completed by April. We’ll also set up our over one million sq ft first hyperscale data centre with 100MW power capacity,” BS Rao, VP-marketing at CtrlS Datacenters, said.

Apart from the Mumbai data centre, the company is also planning a larger 150 MW data centre in Hyderabad which will commence operations by 2020. Another data centre with 70MW capacity will subsequently be set up in Chennai.

CtrlS Datacenters said the new Mumbai data centre will come up in the suburbs of Mahape. The company has acquired land in Hyderabad and is now scouting for land in Chennai to set up the new data centre.

Rao said a 40,000 sq ft data centre can cost anywhere between Rs 70-90 crore. A 300,000-400,000 sq ft data centre costs anywhere between Rs 150-200 crore.

The spike in demand from large internet companies is turning India into a cloud data centre hub. Moreover, with the government asking companies to localise data, demand for data centres in the country has accelerated.

While internet companies such as Google, Amazon, Microsoft and IBM claim to have their own data centres in India, these global giants lease out space in the data centres of companies such as CtrlS, Netmagic and Sify.

Data centre infrastructure hardware enterprise spending in India is forecast to increase 2.6 percent to $2.7 billion in 2018, according to market research firm Gartner. Spending on IaaS in India is set to grow 45.5 percent to $1 billion in 2018.

Gartner says there is an increase in the number of migrations of on-premises office suites to software as a service-based offerings such as Google G suite and Microsoft Office 365. Indian businesses spending on cloud office suites is expected to increase 37 percent to $275 million in 2018.