Data Centre Policy : Suggestions to Govt of Haryana

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Data Centre Policy : Suggestions to Govt of Haryana

Jayakumar Selvaraj

@Jayakumar

July 6, 2021

Public Policy

126

Government of Haryana is in the process of adopting a Data Centre policy for the State. In an interaction with the Government chaired by the Deputy Chief Minister on 16th June, we made the following suggestions.

Land

The draft mentions that the Govt of Haryana will endeavour to provide land on lease basis in the Govt notified Data Centre parks/ Clusters. However, colocation data centres prefer land that are freehold than lease hold. This is because large Hyperscale and enterprise customers would prefer to sign contracts with Data Centres that own the land to minimise any uncertainty or dispute over the land in which the Data Centres are built. Therefore, the Govt should provide for an option that enables purchase of land by the Data Centres.

The draft mentions that land parcels will be earmarked in Tier-III Districts/ Cities like Yamunanagar, Hisar, Panipat or other locations well connected to National Capital through a robust road network. Data Centers prefer locations that closer the Tier-I cities for two reasons – to minimise latency and availability of skilled manpower, particularly to perform trouble shooting during disruption. Therefore, we are of the view that the tier III districts being considered may not be best choices to attract Data Centers. Suitable location around Gurgaon and Faridabad may be identified for the purpose.

Regulatory Clearance

Given the number of clearances required from the State Govt, the policy rightly focuses on providing timely regulatory clearances for establishing a Data Centre. We welcome the proposal that pre-commencement approvals will be provided within 10 days of acceptance of the application and the commencement approvals will be provided within 15 days of acceptance of the application.

However, to strengthen this further, the State Government should enable a deemed approval system for statutory / regulatory clearances.

Power

Affordable and uninterrupted supply of power is an important requirement for Data Centres and the draft policy rightly focuses on this aspect. In this context, we suggest that the Government should allow Data Centres to procure and use renewable energy to meet 100% of their power needs.

Building Norms

We believe it is extremely important to have independent norms for Data Centres, and the following requirements may be considered for inclusion in the revised building codes for Data Centres.

- G+4 structure to house Diesel Gensets
- Up to 6.5m slab to slab height without any implication on the FSI
- Chiller platform on terrace, up to 3.5m height, to store chillers
- Exemption from minimum car park requirement or car parking requirement to be made proportionate to the office/admin space in the Data Centre building (and not the entire building)
- Relaxation on maximum land coverage for construction, at least 60%
- Fencing wall of 3.5 m be allowed

Definition of Data Centre Park

The draft provides for a set of incentives for promoting Data Centre Parks and Data Centres in the State. We note that as per the draft policy a Data Centre Park is eligible for incentives only if it is set up with a minimum area of 5 acres and has at least 1.5MW of power capacity.

Today, a Data Centre with an installed power capacity of 1.5 MW, would require much lesser than 5 acres of land. Therefore, with this condition, most Data Centres with a power capacity of over 1.5 MW that are built efficiently, would not qualify for the incentives in the policy. Also, as technology evolves, the area required to build a Data Centre of particular capacity may also change.

Therefore, we suggest that the eligibility criteria be amended and any Data Centre Park with an installed power capacity of 1.5 MW be made eligible for the incentives under the policy, irrespective of the area occupied.

Data centre

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Jayakumar Selvaraj

Jayakumar