As the country's digital economy is growing, Nippon Telegraph and Telephone (NTT DATA) plans to invest $1.5 billion in India for over three years through fiscal 2027, doubling its data center capacity.

NTT is the leading data center provider in India in terms of power capacity with 21 data centers from four cities, mainly in Mumbai. In the coming years, NTT data centers may increase to 30, with a move into the city of Kolkata this year. Total capacities of data centers in five cities are expected to rise by two and a half times from the existing capacity of 290 MW. This new investment builds on the roughly $3 billion poured so far into the South Asian country's digital infrastructure.

NTT also plans to deploy its Innovative Optical and Wireless Network technology, a light-based system that promises faster communications using less energy. IOWN-based services have already started in Mumbai.

By June, data centers in Mumbai and Chennai are expected to connect to one of Asia's largest undersea cable networks: NTT's MIST, which links to Singapore and Malaysia. This will enable high-speed, high-capacity communications in the region.

 

NTT sees a huge demand for data centers in India as the country boasts a wealth of information technology talent, and the companies like Google and Microsoft have R and D teams here. According to Statista, Indian data center market revenue will reach $11.85 billion in 2029, roughly up by 40 percent from 2024.

 

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NTT the world's third-largest colocation data center provider, after US companies Equinix and Digital Realty Trust, rose to the top of India's data center market in 2022. NTT completes 40^th anniversary of privatization by April this year. It sees data centers as a promising field for global growth as its wireless business in its home market of Japan faces headwinds from the shrinking population. Its global solutions business accounted for roughly 30 percent of overall operating revenue.