Yotta to invest $1.1bn in new hyperscale campus in Bengal
The Hiranandani Group, one of India’s largest real estate investment and development firms, is further doubling down on the success of its data centre subsidiary Yotta. This week, the firm that it would invest Rs 8,500 crore ($1.1bn) into the purchase of 100 acres of land in Kolkata, West Bengal, which it plans to use to develop a new hyperscale data centre campus.
The proposed campus will reportedly comprise six individual data centre buildings with a combined IT load capacity of 250 MW upon completion. The first phase of the project is expected to come online in 2023.
The development will also house a state-of-the-art logistics park in order to further support the group’s operations. This element of the project is reportedly being developed as part of a joint venture between Hiranandani and US investment management company, the Blackstone Group. The joint venture is operating under the name Greenbase and is expected to spend around $200mn on developing the park, bringing the whole project’s projected cost to around $1.3bn.
When asked about the site selection for Yotta’s latest hyperscale campus and the Greenbase logistics park, Hiranandani Group CEO, Darshan Hiranandani, said that, “West Bengal is the gateway to the East. It is an ideal hub for logistics and industrial development with excellent road, rail and riverine connectivity.”
He added, “By setting up a data center park in Kolkata, we will not only serve the customers of the state but the entire eastern region including neighboring countries.”
Yotta is in India over the coming years. The Hiranandani group only launched its data centre subsidiary in 2019, but the company has already positioned itself as the largest hyperscaler in the country.
By the end of 2021, the group will have invested around Rs 15,000 crore ($1.65bn) across its projects in Navi Mumbai, Delhi, and Chennai.
Yotta’s NM1 hyperscale data centre in Panvel, which has a capacity of 50 MW spread across 7,200 racks, is India's largest data centre housed in a single building. The company operates 11 data centres across India, and has a combined capacity currently in operation of 500 MW.
When discussing the company’s massive investment into the indian data centre market, Yotta CEO Sunil Gupta explained that the company is confident that the country is on track to become a leading global player and the massive supply that Yotta is creating will very soon be met with equally massive demand.
“There are two factors that led to the growth of data centers in India: Massive data explosion within India and the rapid adoption of cloud computing,” he said in a recent interview. “Our first datacenter Yotta NM1 was launched and has a capacity of 7,200 racks. It is almost 50 per cent bigger than the largest existing data centre in India and in fact it is Asia’s largest and world’s second-largest Uptime Institute Tier 4 certified data centre.” He added that, in addition to its Kolkata project, the company is exploring building new campuses in Bangalore, Gujrat and Hyderabad.
Equinix: Digital leaders expect changes to working patterns
A global report released by Equinix has revealed that digital leaders expect long-term changes to the way people work.
As part of the report, the data infrastructure company surveyed 2,600 IT decision-makers from several different businesses spanning 26 countries in the Americas, Asia-Pacific and EMEA regions. The study also highlighted the biggest technology trends affecting global businesses and how the COVID-19 pandemic has impacted digital infrastructure plans.
Talking about companies’ expansion strategies, Claire Macland, Senior Vice President of Global Marketing at Equinix, said: “Many companies are now investing more in their digital infrastructure to enable them to embrace a hybrid working model and thrive in the new world of work we all find ourselves in.
“Despite headwinds in many sectors, many organizations are continuing to expand physically and virtually into new markets and regions around the world”, she said.
The report drew the following conclusions:
- 64% of the 2,600 digital leaders surveyed believed there will be “long-term changes to both how and where people will work in the future.
- 57% of global companies intend to expand into new regions despite the effects of the pandemic
- 51% of businesses worldwide say they have rearchitected their IT infrastructure so that it can meet the demands of remote and hybrid working. Digital transformation has also been accelerated due to an increase in businesses’ technology budgets.
How might digital transformation be affected post-pandemic?
COVID-19 has demanded that companies make several changes to the way that they operate, including digital transformation. According to the study, 47% of those surveyed reported that they have accelerated their digital transformation plans because of the Coronavirus pandemic. A further 42% of organisations said their budgets have increased to keep up with the growth of digital transformation.
Another change in adapting to the pandemic was to businesses’ IT strategies with six in 10 companies saying that it has been revised in response to the situation. 58% said they are looking to invest in technology to “improve agility’ post-COVID.
When asked about their priorities for their digital strategy, 80% of respondents said that digitising their infrastructure was of utmost importance, while 57% viewed interconnection as a ‘key facilitator’ of digital transformation.
"This increasing focus on digitization and expansion is one of the reasons why Equinix has continued to invest in its own growth. We completed 16 new expansions in 2020—our most active build year ever—and expect to continue to evolve Platform Equinix to support our customers as they continue on their digital transformation journey”, said Claire Macland.
Potential concerns disperse over expansion plans being halted by COVID-19
The study has also revealed that organisations’ previous concerns that the pandemic will negatively affect their business expansion plans have been lessened.
57% of businesses have said that they “still have plans” to expand into new regions and of that percentage, nearly two-thirds (63%) plan to do so virtually instead of investing in physical IT infrastructure.
The full Equinix report can be found here.