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Recommendations for Data Centre Policy

April 1, 2020

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Globally, data is being created at an unprecedented pace. Global Datasphere, which is the total amount of data created, stored and replicated is estimated to grow from 33 ZB in 2018, to 175 ZB by 2025.[1] Given this trend, there is a need for data Centres to store data, which in turn can be leveraged to provide a variety of cloud services.

In this background, the Finance Minister in her Budget speech this year proposed bringing out a policy to enable the private sector to build Data Centre parks in India. In response to this announcement, NASSCOM formed a 10 member Data Centre Policy Taskforce, comprising of senior industry leaders, to propose recommendations that can help promote the growth of data Centres in India. The key ones are listed below.

  1. Establish Pre-Provisioned Data Centre Parks with necessary infrastructure to host multiple data Centres.
  2. Establish dual power grid networks to ensure uninterrupted supply of electricity.
  1. Allow Data Centres to consume Renewable Energy procured directly from power producers through the open access system, without any restrictions.
  1. Allow IP-I companies to share passive infrastructure directly with Data Centres in order to establish, maintain and operate an extended “private telegraph” (non-public telecommunications services) between two or more data Centres in different locations. 
  1. Enable Data Centres entities to import dual use of network equipment for internal use and network infrastructure.
  1. Implement a Dial Before You Dig Policy (DBYDP), which would allow authorities responsible for carrying out construction work to access information about the underlying network infrastructure before digging.
  1. Create Common Service Ducts and utility corridors in all new cities as well as State / national highway road projects.
  1. Recognize Data Centres as a separate category in the National Building Code.
  1. Introduce deemed approval system for statutory clearances.
  1. Provide ‘Infrastructure’ status to Data Centres.
  1. Notify Data Centres as Essential Services under “The Essential Services Maintenance Act, 1968”
  1. Create an implementation mechanism to implement the above recommendations.

[1] Reinsel et al., ‘The Digitization of the World: From Edge to Core’, IDC White Paper, November 2018; available at: https://www.seagate.com/files/www-content/our-story/trends/files/idc-seagate-dataage-whitepaper.pdf


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