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MEITY unveils draft Data Centre Policy 2020

The ministry of electronics & information technology’s (MeitY) e-Governance division has put together a draft for the Data Centre Policy 2020 to position India as a global data centre hub.

With this policy, the government is also looking to boost investment in the sector and encourage domestic manufacturing of data centre equipment manufacturing in a draft.

The data centre is a dedicated secure space within a building or a centralised location where computing and networking equipment is concentrated for the purpose of collecting, storing, processing, distributing or allowing access to large amounts of data.

The draft highlights the need for data centre infrastructure within the boundaries of the country due to the data localisation provisions proposed in the Data Protection Act.

The draft policy essentially laid out a policy framework including various structural and regulatory interventions. It also identifies possible areas of participation by MSMEs, startups and other Indian IT companies. MEITY mentioned that it seeks to strengthen the Atmanirbhar Bharat initiative by identifying possible opportunities of manufacturing of data centre equipment in the country, including non-IT as well as IT components.

One of the strategies to create favourable climate for investments in the data centre sector, both domestic investments and foreign direct investments, is that the government is looking to provide “infrastructure status” to the data centre sector, at par with other sectors like railways, roadways and power. This means the sector can avail long-term credit from domestic and international lenders at easier terms.

The draft highlighted, “The need for data centre infrastructure in the country already opens up a potential opportunity for investments of the order of $4.9 billion by 2025, which could be further increased given we progress in the direction of becoming a data centre location of choice for global players.” cnbctv18

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