The Singapore-based colocation services provider ST Telemedia Global Data Centres (STT GDC) has revealed plans to invest $3.2 billion (INR 26,000 crores) to increase the capacity of its data centers in India.

Over the next five to six years, the project plans to build 550MW of data center capacity, approximately tripling the company's present IT load capacity.

The decision by STT GDC is motivated by the growing need for digital infrastructure in India, which is being fueled by the growth of cloud computing, digital transformation, AI applications, and data consumption. The company's strategic decision was further explained by Bruno Lopez, President and Group Chief Executive Officer of ST Telemedia Global Data Centers.

"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."

Tata Communications Ltd has a minority ownership in STT GDC India, which is a joint venture between STT GDC and the company. The company runs 28 data centers with a total capacity of more than 318MW of IT load spread across ten Indian cities. Approximately 1,000 enterprise clients—many of whom are Fortune 500 companies—are represented in the portfolio.

Apart from its expansion objectives, STT GDC India has been acknowledged as one of the Best Places to Work in Asia and a Great Place to Work for the past five years. In terms of revenue, the corporation claims about 28 percent of the market in the Indian data center industry.

STT GDC participated in a Business Roundtable with Indian Prime Minister Narendra Modi, along with other business executives from Singapore. The Singapore Business Federation was in charge of organizing the event, which happened on September 5, 2024. The tight commercial linkages that exist between Singapore and India as well as the prospects for collaboration in the digital economy are highlighted by this engagement.

STT GDC's strategic investment fits well with India's growing digital ecosystem and its ambition to become a $1 trillion digital economy by 2025. The significant financial investment indicates the company's intention to help India's digital infrastructure by enabling cutting-edge technologies and services, as well as its belief in the country's potential.