The Yamuna Expressway Industrial Development Authority (Yeida) has approved a data centre park across a 100-acre land parcel near the upcoming Jewar airport, with an aim to attract domestic and foreign investors.
The state government aims to attract investment to the tune of Rs 20,000 crore and establish three data centre parks, first of which has already been approved by Yeida.
“The process to acquire land for it has been started and companies will need to apply through the web portal of the UP government,” said Arun Vir Singh, CEO of Yeida.
The authority has decided to offer 10 and 5 acre plots.
The local authorities—Noida, Greater Noida and the Yamuna Expressway Authority—that hold land banks near the upcoming airport have recently adopted the Uttar Pradesh government’s data centre policy.
According to the policy, any company investing over Rs 200 crore in data centres will be eligible for relaxation in stamp duty, electricity charges and building by-laws.
“The favourable policies of the UP government have already attracted companies to Noida and Greater Noida with 5-6 major transactions happening in a year,” said Vibhor Jain, managing director-north India at Cushman & Wakefield. “With the approval of the data centre park, companies can take other benefits announced by the UP government. As many infrastructure projects in the pipeline, including the airport, the data centre park should see interest from both the domestic and global companies.”
While the state cabinet approved the policy in January 2021, the three authorities adopted the policies at their board meetings in June.
Hiranandani Group’s Yotta Infrastructure, NTT Ltd, STT Global Data Centres India and AdaniEnterprises are among the companies that have been allotted land for data centres in the region.
Under the policy, investors will be offered incentives on capital, interest rates and subsidies on land procurement, besides non-financial incentives.
“Data centres are the bedrock of a digital economy and these will further get turbo-charged by the ease of access to these data centres through cloud technologies,” said Shree Parthasarathy, national managing partner-trust & transformation , Grant Thornton Bharat.
Special incentives will also be provided for companies looking to invest in backward regions of Bundelkhand and Purvanchal.
Data centre parks will also lead to various information technology and related units coming up in the vicinity and generate employment.
The government expects the data centre sector to generate direct employment for 4,000 people and indirect employment for 20,000. While the Centre has prepared a draft on a data centre policy, Telangana is another state apart from UP that already has a data centre policy in place.