The Telangana overture came after the Union budget proposal to establish data embassies in the Gujarat International Finance Tec-City.
Published Feb 16, 2023 | 6:25 PM ⚊ Updated Feb 16, 2023 | 6:26 PM
File photo of Telangana IT and Industries Minister KT Rama Rao. (Supplied)
Telangana IT and Industries Minister KT Rama Rao on Thursday, 16 February, wrote to Union Minister for Finance and Corporate Affairs Nirmala Sitharaman on the Union budget proposal to establish data embassies in the Gujarat International Finance Tec-City (GIFT city).
In the letter, he cautioned her about the possible huge risks involved in setting up international data embassies at a single location — that too in a state highly prone to earthquakes.
He drew her attention to Hyderabad as an ideal location for such data centres.
Moreover, he argued, this move might pose a security threat as the proposed location was in a state that shared its border with another country.
KTR suggested that the interests of the client countries should also be considered while choosing the location for the Data Embassies.
KTR said that Hyderabad is 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.
“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 of 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,” KTR said in the letter.
The Telangana minister said that after due diligence, global corporate majors chose Telangana to set up their large data centres.
From Amazon Web Services to Microsoft Azure, the state had pledges for several hyper-scale and cutting-edge data centres, he said.
KTR added that the Telangana government launched its Data Center Policy in 2016 and offered several incentives and approval provisions to facilitate the setting up of data centres.
These include access to dual power grids, low-cost power supply, and a high-speed fibre network.
“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,” he wrote.
KTR also urged the Union finance minister to modify the budget proposal to provide them with multiple locations that would suit their data security requirements.
He said that it would provide a level playing field for data infrastructure among the states.
