KTR writes to Nirmala Sitharaman; pushes for International Data Embassies in Hyderabad

The Minister said Hyderabad was one of the least active seismic zones in the country, which makes it an ideal location for setting up such data centres

Hyderabad: IT and Industries Minister KT Rama Rao on Thursday wrote to union Finance Minister Nirmala Sitharaman raising serious objections against the budget proposal for establishing International Data Embassies in the Gujarat International Finance Tec-City (GIFT City).

Detailing the huge risks involved in establishing the Data Embassies at one location, that too in a State highly prone to earthquakes, the Minister also made a strong case for these embassies in Telangana, highlighting the advantages that Hyderabad held as an ideal location for data centres.

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The move to establish the International Data Embassies in the GIFT City might also pose a security threat as the proposed location was in a State sharing its borders with another country, he said, suggesting that the interests of the client countries should also be considered while choosing the location for the Data Embassies.

Hyderabad was in Seismic Zone-II, one of the least active seismic zones in India, which makes the city an ideal location for setting up data centres, he said.

“In contrast, GIFT City is located in Seismic Zone-III and is very close to Seismic Zone-IV, indicating that the region is at a high risk for earthquakes. Developing International Data Embassies in such an area presents potential risks and could have significant consequences for international relations if critical infrastructure is impacted,” he said.

The Minister said that after due diligence, global data centre majors chose Telangana to invest in setting up their large data centres. From Amazon Web Services to Microsoft Azure, the State was now home to several hyperscale and edge data centres, he said, pointing out that the State government launched its Data Centre Policy in 2016 and offered several important incentives and approval provisions to facilitate the setting up of data centres.

Access to dual power grids, low-cost power supply and a high-speed fiber network were only a few of such provisions.

“The overall experience of the companies which have invested in Telangana has been extremely positive. The State will be happy to provide similar support to International Data Embassies,” the Minister said, urging Sitharaman to modify the budget proposal to provide them with multiple locations that would suit their data security requirements. This, he asserted, would provide a level playing field for data infrastructure among the States.