KTR writes to Nirmala on Data Embassies

HYDERABAD: Telangana information technology (IT) and industries minister K.T. Rama Rao wrote a letter to the Union minister for finance and corporate affairs, Nirmala Sitharaman raising serious objections against the budget proposal of establishing the Data Embassies in Gujarat International Finance Tec-City (GIFT City), Gujarat.

Making a logical case, the minister detailed the huge risks involved in establishing International Data Embassies at one location that too in a state highly prone to earthquakes.

The letter also highlights the advantages that Hyderabad holds as an ideal
location for data centers.

Moreover, this move might pose a security threat as the proposed location is
in a state sharing border with another country. The minister suggested that
the interests of the client countries should also be considered while
choosing the location for the Data Embassies.

K. T. Rama Rao said that Hyderabad is in Seismic Zone II, one of the least
active seismic zones in India, which makes the city an ideal location for
setting up data centers.

“In contrast, GIFT city is located in Seismic Zone III and is very close to
Seismic Zone IV, indicating that the region is at high risk for 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,” the IT Minister said.

The minister said that after due diligence, global data center majors chose
Telangana to invest in setting up their large data centers.

From Amazon Web Services to Microsoft Azure, the state is now home to
several hyper scale and edge data centers. The minister said that the state
government launched its Data Center Policy in 2016 and offered several
important incentives and approval provisions to facilitate the setting up of
data centers.

Access to dual power grids, low-cost power supply, and a high-speed fibre
network are a few such provisions.

“The overall experience of the companies which have invested in Telangana
has been extremely positive. The state will be happy to provide similar
support to International Data Embassies,” the minister remarked.

The minister urged the Union finance minister to modify the budget proposal
to provide them with multiple locations that would suit their data security
requirements.