Chennai Becoming India’s Next Data Centre Hub

Chennai could fast emerge as one the most prominent private data centre hubs in the south, with at least six companies committing more than Rs 12,000 crore investments between April and now, and many more projects expected soon. Availability of industrial parks and land in and around Chennai, undersea cables that connect the city to south east Asian countries and TN’s status as a power surplus state are some of the reasons for companies to choose the city over others. Chennai, with its reputation of being the gateway for global internet companies in India, coupled with the progressive policies of the local government, offers great opportunity to the data centre industry to thrive and flourish. While Mumbai, the financial capital of India, is far ahead on this, Chennai is making a strong pitch to be the second major data hub in the country. Tamil Nadu’s multiple submarine cable landing stations, surplus power and proximity to key Asian hubs make the state a leading data centre destination. Recent spate of investments is a testimony to the state’s growing prowess as a data centre hub. A data centre policy of Tamil Nadu is under preparation as there are large number of inquiries from global companies, who are keen to either have their main data centre here or have their data back-up base (disaster recovery centre) in Chennai. The state government’s support on policies that are conducive for data centre operators will bring more investments and customers into the state.