NTT invests $1.5bn to double India data center capacity

On Monday, Nippon Telegraph (OTC:NTTYY) and Telephone (OTC:NPPXF) Corporation (NTT) announced its plan to invest $1.5 billion in India over the next three years, aiming to more than double its data center capacity in the country by fiscal 2027. This move is in response to the burgeoning digital economy in India, where NTT is already the leading data center provider in terms of power capacity.

With 21 data centers spread across four cities, including Mumbai, NTT’s expansion includes the opening of its largest data center campus in India, equipped to handle over 500 megawatts (MW) of power when fully operational. The company operates nearly two-thirds of its Indian data centers on renewable energy and is committed to using 100% renewable energy by 2030 across all its data centers and operations.

The expansion also encompasses the launch of the Malaysia, India, Singapore Transit (MIST) submarine cable system, an 8,100-kilometer cable capable of carrying over 200 terabits per second, which will connect Malaysia, India, Singapore, and Thailand. The cable system, which will be operational by June 2025, has already been connected to NTT DATA’s landing stations in Mumbai in February 2023 and Chennai in May 2023.

In addition to physical infrastructure, NTT DATA is enhancing its Innovation Centre in Bengaluru, focusing on artificial intelligence (AI), digital twin, and quantum computing projects. This center is part of a global network of 11 innovation centers that are driving AI-led technology solutions, including agentic AI.

NTT is also deploying its Innovative Optical and Wireless Network (IOWN) in India, a cutting-edge All-Photonics Network technology, to interconnect data centers in the Mumbai region. This technology is expected to provide high-capacity network access at lower costs and is part of NTT’s global strategy to support the increasing AI-driven global data volume.

President and CEO of NTT, Akira Shimada, emphasized India’s importance in the company’s global strategy, noting that the country is one of NTT’s top 10 revenue-generating markets. NTT’s substantial global investment of 8 trillion Yen (approximately $59 billion) over five years from FY2023 to FY2027 includes a focus on data centers and AI. Abhijit Dubey, CEO of NTT DATA, Inc., and Avinash Joshi, CEO of India at NTT DATA, also highlighted the company’s commitment to India’s digital infrastructure and the region’s potential for growth and innovation.

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