NTT announces to invest $2 bn in India over next four years

In order to build data centers, the Japanese company NTT has announced to invest USD 2 billion (over Rs 14,000 crore) in India.

The company will build new campuses in Navi Mumbai, Chennai and Noida. It is also augmenting capacities at its existing facilities in the financial capital and Bengaluru.

"We will invest USD 2 billion in India for building data centres over the next four years," the company's Chief Executive for India Sharad Sanghi told a news source.

As per Sanghi, a part of the investment will be used in setting up solar and wind power generating facilities because the company is committed to have its own captive power generation capabilities from renewable power at the same level as the consumption requirement in five years.

While talking about the competition and its impact, he said there can be pricing pressures in the near to medium term but eventually the data centre industry will lead to consolidation, just like the telecom sector.

Clients, which include global hyperscalers like the companies offering cloud services and deal with sensitive data because of localisation requirements, do not mind paying for the services, he added.

The company will also consider acquisition opportunities "opportunistically" and any such move would lead to the overall investment going above USD 2 billion, Sanghi said.

The company has inaugurated a new 35 MW centre at its existing facilities in suburban Chandiwali, which takes the overall capacity at the facility to 100 MW.

Sanghi said at present, there are three buildings in the campus and it will add an equal number as part of the new investment plan and added that the facility is also host to a cable landing.

NTT is hopeful about India as it is one of the fastest growing markets for the company, globally.

It inaugurated a solar power plant in the Solapur district of Maharashtra, Sanghi said, adding that the overall investment for the two facilities inaugurated in Solapur and Chandiwali is USD 150 million.

The company is also looking at a solar and wind power facility in Karnataka.