Data Center Investment: Maharashtra & MP Offer Incentives

Mumbai, Feb 21 (PTI) With data center capacity expected to grow to USD 8 billion by 2026 from the current USD 4.4 billion, states such as Maharashtra and Madhya Pradesh are offering incentives to attract investment in the sector.

Maharashtra is working with the data center industry to give the sector a fillip, state Officer on Special Duty to Deputy Chief Minister Kaustubh Dhavse said at the 5th CII Data Center Summit here on Wednesday.

The Maharashtra government is creating an environment for the industry, which has made Mumbai and Pune the hub of data centers in the country, he added.

Joint Director, In-Charge (State Data Center) M P State Electronics Department Corporation, Abhishek Anant, said Madhya Pradesh is proposing a new data center farm between Indore and Dewas.

The farm, he said, will be set on about 80 acres and will be located 8.5 km from Indore.

"Madhya Pradesh is focused on attracting investment in the IT/ITeS sector, including data centers. We are also offering several attractive policy incentives like providing capital assistance to the tune of Rs 125 crore, electricity charges and stamp charges reimbursements among others to attract companies to set up data centers in the state," he added.

Kamal Nath, Co - Chairman, CII Western Region Taskforce on Data Center, and Chief Executive Officer, Sify Technologies, urged prioritising of data localisation and security.

Design and real estate, plant and machinery innovations, robust network, renewable energy, and innovative financial models will support growth of the data center industry, he said.