Govt asks Microsoft to set up data centres closer to power generation sites
Speaking at the launch of Microsoft's fourth India cloud region in Hyderabad, Krishnan said it was easier and more economical to build data centres near power sources than near coastal cable landing hubs such as Chennai.
On Monday, the government requested Microsoft to establish new data centers in closer proximity to power generation sites rather than near cable landing stations, according to Electronics and IT Secretary S Krishnan. Krishnan argued that this approach would reduce costs for both the company and the nation, as it would be more cost-effective and convenient to construct data centers near power sources as opposed to coastal cable landing hubs like Chennai.
The government remains committed to expediting approvals to satisfy both national and international demands. Microsoft announced the launch of its fourth India cloud region in Hyderabad on Monday, as part of its $20.5 billion investment pledge to India's digital and AI infrastructure. This India South Central region, now generally available, joins the company's existing regions in Pune, Chennai, and Mumbai.
Krishnan emphasized the significance of the launch in bolstering India's data center and AI infrastructure, highlighting the country's potential to become the "application powerhouse of the world" due to its vast population and burgeoning digital public infrastructure. Krishnan also pointed out India's favorable tax policies, business environment, and a new telecom law that facilitate easier interconnection of facilities.
The Hyderabad facility utilizes air-cooled chillers for cooling instead of traditional water-based systems, consuming minimal water. Microsoft India and South Asia President Puneet Chandok noted that India currently has around 2 GW of data center capacity, which is projected to expand to 6-7 GW by 2035, with over $100 billion in investments already secured.
Microsoft Vice Chair and President Brad Smith delivered a video message, stating that the new region would provide organizations in India and Asia with enhanced capacity, resilience, and choice. The expansion comes as India's digital sector rapidly grows, with IDC projecting India's public cloud services spending to reach $45.7 billion by 2030, growing at a 22.2% annual rate, and AI spending expected to increase at twice that pace.
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