NTT to invest over $2 billion to expand India data centers, lay new Asian cable

01, Oct. 2020

A file photo of a NTT-Netmagic’s office in Mumbai. The wholly-owned subsidiary of Japan's NTT Ltd., currently operates 10 data centers across four major cities in India. (Photo Courtesy of NTT-Netmagic)
A file photo of a NTT-Netmagic’s office in Mumbai. The wholly-owned subsidiary of Japan's NTT Ltd., currently operates 10 data centers across four major cities in India. (Photo Courtesy of NTT-Netmagic)

By Atul Ranjan

NEW DELHI, NNA - NTT Ltd., a global information technology services provider, plans to invest over $2 billion over the next four to five years as part of its global expansion to meet surging demand for data storage.

The bulk will be spent on enhancing data center facilities and related infrastructure in India, said a media statement from the Japanese company.

NTT, which launched its new high-density data center facility in Mumbai on Wednesday, said it is in the process of expanding its India operations with plans to launch new data center facilities and build supporting infrastructure like captive solar power projects by 2025.

About $400 million will go into laying new subsea cable ‘MIST’ to connect Singapore, Myanmar and India, Sharad Sanghi, CEO of NTT's global data centers and cloud infrastructure, told NNA on Wednesday.

“We are looking to set up six data center campuses and parks in the next four to five years across India. Three campuses in Mumbai region, one campus each in cities such as Noida, Chennai and Bengaluru will house several data center facilities,” Sanghi said, adding that the company is “aggressively” acquiring land for the purpose.

Sanghi noted that the demand for data centers is set to grow further as the Indian government is pushing for data localization and data privacy laws while more businesses going online due to COVID-19 pandemic have been driving up data consumption in the country.

Following the launch of the new “Mumbai 7 Data Center” yesterday, NTT’s global data centers and cloud infrastructure division in India now operates 10 data centers across four major cities.

Masaaki Moribayashi, senior executive vice president of NTT services, said in a media statement, “India has been a key market for NTT’s data center portfolio. Organizations today demand an ever-expanding global platform to reach their growing digital business objectives.”

Moribayashi said the company is continuing with its expansion of state-of-the-art data centers in new and existing markets that complement its global footprint and support clients as demand for reliable, robust cloud services, cloud communications and digital services increases.

Ryuichi Matsuo, executive vice president for NTT's global data centers division, told NNA that NTT will launch five new data centers in the current fiscal year ending March 31 2021, and another nine in the next fiscal year (FY 21-22) in various countries including Malaysia, Indonesia and Vietnam.

Of the five new data centers planned for this fiscal year, one has just been launched in Mumbai while the other four will be built in London, Tokyo, Oregon in the U.S. and Cyberjaya in Malaysia, Matsuo said.

NTT currently operates the third-largest data center platform in the world, hosting over 160 centers spanning more than 20 countries and regions.

According to a report by ResearchAndMarkets.com issued in April, the global data center infrastructure market is projected to grow at a compounded annual growth rate of 6.79 percent to reach a market size worth $230.16 billion in 2025, up from $155.20 billion in 2019.

“The increasing demand for cloud networking is majorly driving the market for data center infrastructure,” the report said.