STT GDC to invest USD $3.2 billion in India's digital growth
ST Telemedia Global Data Centres (STT GDC), a colocation services provider based in Singapore, has announced plans to invest USD $3.2 billion (INR 26,000 crores) in expanding its data centre capacity in India. The investment aims to add 550MW of data centre capacity over the next five to six years, nearly tripling the company's current IT load capacity.
STT GDC's move is driven by the increasing demand for digital infrastructure in India, spurred by the rise in data consumption, cloud computing, digital transformation, and AI applications. Bruno Lopez, President and Group Chief Executive Officer of ST Telemedia Global Data Centres, elaborated on the company's strategic decision. "As we celebrate STT GDC's 10th anniversary this year, embarking on this ambitious expansion is a sign of our confidence in Digital India and the future of one of STT GDC's strategic and fastest-growing markets globally," said Lopez.
He further highlighted the role of India's digital growth: "Prime Minister Modi's vision for Digital India has paved the way for opportunity; today the India digital economy's growth rate of almost three times overall GDP growth is putting the country on pace to achieve a USD $1 trillion digital economy by 2027-2028. 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."
STT GDC India is a joint venture between STT GDC and Tata Communications Ltd, the latter holding a minority stake. The firm operates 28 data centres in 10 cities across India, with a combined capacity exceeding 318MW of IT load. The portfolio includes around 1,000 enterprise customers, featuring many Fortune 500 companies.
In addition to its expansion plans, STT GDC India has also been recognised as a Great Place to Work for five consecutive years and one of the Best Places to Work in Asia. The company claims approximately 28% of the market share by revenue in the Indian data centre sector.
STT GDC, alongside other business leaders from Singapore, took part in a Business Roundtable with Indian Prime Minister Narendra Modi. The event was organised by the Singapore Business Federation and took place on 5 September 2024. This engagement underscores the close business ties between Singapore and India, and the collaborative opportunities that exist in the digital economy sector.
The strategic investment by STT GDC aligns with India's expanding digital ecosystem and its projected transformation into a USD $1 trillion digital economy. The substantial financial commitment reflects the company's belief in India's potential and highlights its intent to support the country's digital infrastructure by enabling advanced technologies and services.
