HYDERABAD: IT Minister KT Rama Rao on Thursday wrote to Union Finance Minister Nirmala Sitharaman raising serious objections against the Budget proposal of establishing Data Embassies in Gujarat International Finance Tec-City (GIFT city), Gujarat.
In his letter, Rama Rao detailed the huge risks involved in establishing International Data Embassies at one location that too in a State highly prone to earthquakes. He also highlighted the advantages that Hyderabad holds as an ideal location for data centres. “Moreover, this move might pose a security threat as the proposed location is in a State sharing its border with another country,” Rama Rao wrote, suggesting that the interests of the client countries be considered while choosing the location for the Data Embassies.
Pointing out that Hyderabad is in Seismic Zone-II, one of the least active seismic zones in India, Rama Rao said that this makes the city the ideal location for setting up data centres. “In contrast, GIFT city is located in Seismic Zone III and is very close to Seismic Zone IV, indicating that the region is at a high risk of earthquakes. Developing international data embassies in such an area presents potential risks and could have significant consequences for international relations if critical infrastructure is impacted,” he wrote.
Rama Rao said that after due diligence, global data centre majors chose Telangana to invest in setting up their large data centres. From Amazon Web Services to Microsoft Azure, the State is now home to several hyper scale and edge data centres. He also said that the State government launched its Data centre Policy in 2016 and offered several important incentives and approval provisions to facilitate the setting up of data centres.
“Access to dual power grids, low-cost power and a high-speed fibre network are a few such provisions. The overall experience of companies which have invested in Telangana has been extremely positive. The State will be happy to provide similar support to International Data Embassies,” Rama Rao wrote.