The government has granted infrastructure status to data centers with an IT load capacity above 5 megawatts, according to a recent notification.
The move helps data center companies gain easier access to institutional credit at lower rates, attract foreign investment, and more.
“Data center is included in the harmonized master list of infrastructure sub-sectors by the insertion of a new item in the ‘Communication’ category,” reads a notification dated October 11.
Data centers that are “housed in a dedicated/centralized building for the storage and processing of digital data applications with a minimum capacity of 5 MW of computing load” will be considered eligible for infrastructure status, according to the notification. .
The capacity of data centers is measured in terms of the energy they consume, which reflects the scale of the server they house in their facilities.
Finance Minister Nirmala Sitharaman had announced in the budget speech for 2022-2023 that data centers would be granted infrastructure status.
Data center capacity expansion in India by foreign and local companies is expected to add investment to the tune of ₹1.05 lakh to 1.2 lakh crore over the next five years, according to an ICRA report. .
Indian companies such as Hiranandani Group, Adani Group and foreign investors such as Amazon, EdgeConnex, Microsoft, CapitaLand and Mantra Group have started investing in Indian data centers.
Along with them, existing players like CtrlS, Nxtra, STT India are also expanding their capabilities.
A CBRE report released in September said India’s data center market had seen an investment of $14 billion (₹1.15 lakh crore) over the past five years, and cumulative funding could exceed $20 billion. billion (₹1.64 lakh crore) by 2025 as investors seek stable income assets.