In news– The Union government has recently accorded infrastructure status to data centres with some conditions.
Key updates-
- As per the notification, data centres that are housed in a dedicated/centralised building for storage and processing of digital data applications with a minimum capacity of 5 MW of IT load will be considered eligible for infrastructure status.
- The capacity of data centres is measured in terms of power they consume which reflects on the scale of the server they are hosting in their facilities.
- The move helps data centre companies to get easier access to institutional credit at lower rates, attract foreign investments and the like.
- Data Centre is included in the Harmonized Master List of Infrastructure sub-sectors by insertion of a new item in the category of ‘Communication’.
- Finance Minister had made an announcement in the budget speech for 2022-23, that data centres would be granted infrastructure status.
- According to an ICRA report, data centre capacity expansion in India by both foreign and local firms is expected to add investments to the tune of ₹1.05 lakh to 1.2 lakh crore over the next five years.
What is a data centre?
- A data center or data centre is a building, a dedicated space within a building, or a group of buildings used to house computer systems and associated components, such as telecommunications and storage systems.
- At its simplest, a data center is a physical facility that organizations use to house their critical applications and data.
- A data center’s design is based on a network of computing and storage resources that enable the delivery of shared applications and data.
- The key components of a data center design include routers, switches, firewalls, storage systems, servers, and application-delivery controllers.
Source: The Hindu
