STT GDC to invest USD 3.2 bn in India to enhance data centre capacity

ST Telemedia Global Data Centres (STT GDC), one of the fastest-growing providers of data center colocation services globally, with its headquarters located in Singapore, recently announced that it will invest a substantial USD3.2 billion (INR 26,000 crores) to expand its data center capacity in India by a substantial 550MW, nearly tripling its IT load capacity to meet the demands of the country's thriving digital economy over the next five to six years.

This strategic investment is in line with the growing demand for digital infrastructure, which is being driven by the rise in data consumption, cloud computing, digital transformation, and the expanding use of artificial intelligence (AI) applications. Additionally, this investment is anticipated to strengthen STT's position in the industry market in India, where STT now holds a roughly 28% revenue market share.

With Tata Communications Ltd. owning a minority share in the business, STT GDC jointly owns the majority of STT GDC India. The portfolio of STT GDC India includes 28 data centers spread over ten Indian locations. With about 1,000 enterprise clients, many of whom are Fortune 500 organizations, its data center portfolio today has a combined capacity of over 318MW of IT load.

"Starting this ambitious growth is a reflection of our faith in Digital India and the future of one of STT GDC's strategic and fastest growing markets globally, especially as we celebrate STT GDC's tenth anniversary this year. Thanks to Prime Minister Modi's vision of Digital India, opportunities have arisen. With the country's digital economy growing at a rate nearly three times faster than the GDP overall, India is on track to reach a USD1 trillion digital economy by 2027–2028," the company stated. 

Bruno Lopez, President and Group Chief Executive Officer, ST Telemedia Global Data Centres added,"At STT GDC, we want to play an active role in co-investing and contributing to India's long-term success by investing in the foundational digital infrastructure that will help further accelerate Digital India. We are excited about the opportunities ahead and are confident in our ability to contribute significantly to India's digital transformation."

On 5th September, 2024, the Singapore corporate Federation organized a Business Roundtable with Prime Minister Narendra Modi and a number of other prominent Singaporean corporate figures, including STT GDC.