Latest news with #RackBank
Time of India
08-07-2025
- Business
- Time of India
AI infra firm RackBank gets land in Indore, Raipur for data centres
Synopsis RackBank plans to grow data centers in cities like Indore and Raipur. This move aims to cut operational costs significantly. The company recently launched NeevCloud, an AI cloud business. They acquired land in Indore and Raipur for new facilities. These projects receive support from state governments. RackBank targets to raise Rs 700 crore for this expansion.
Economic Times
08-07-2025
- Business
- Economic Times
AI infra firm RackBank gets land in Indore, Raipur for data centres
AI infrastructure startup RackBank is looking to expand data centres in tier-2 cities like Indore and Raipur to reduce its operational cost by 2–3x as compared to data centre hotspots like Mumbai, Chennai and Noida. The firm, which recently launched an AI cloud business unit called NeevCloud, has acquired six acres of land in Indore for an 18 megawatt facility and 13 acres in Raipur for a 100 megawatt facility, Narendra Sen, founder and CEO of RackBank and NeevCloud, told ET. These investments are supported by state governments of Madhya Pradesh and Chhattisgarh respectively in form of power subsidies and other benefits. To maintain competitive pricing for on-demand GPUs (graphics processing units), neocloud firms need to cut fixed costs and operational costs, especially because GPUs guzzle immense power and water. For instance, land costs in Raipur are Rs 30 lakh per acre, less than a tenth of Mumbai's rates, and operational costs are equally compelling, Sen explained.'In tier-1 cities, it costs Rs 50 crore per megawatt to build. We do it for Rs 25 crore in tier-2. State governments like Madhya Pradesh are also supporting data centre companies with single window clearances and dedicated power supply. Our delivery timeline is nine months, as compared to metro cities where it can be 24 months,' he added that RackBank's in-house immersion cooling system Varuna allows it to cut capital costs by up to company is aiming to raise Rs 700 crore debt to fund this expansion. This comes after it raised a $16.5 million (nearly Rs 138 crore) equity seed round in March 2025 from D-Street investors like Ashish Kacholia and Madhulika Agarwal.'We want to become the CoreWeave of Asia Pacific,' he said, referencing the US-based AI cloud startup that recently went public after a meteoric in 2023, NeevCloud currently operates a cluster of over 700 GPUs, including Nvidia H100, H200, MI300 and plans to add the latest Blackwell GPUs in Raipur soon. NeevCloud's model focuses on enterprise AI workloads, medical diagnostics and government partnerships. 'Hyperscalers like AWS and Azure dominate the general cloud, but they don't have enough GPU capacity in India. Startups are hungry for training and inference compute, and they're willing to switch providers,' said Sen. 'We're already seeing strong traction from AI startups and healthcare firms.' On the global front, NeevCloud is also setting up presence in Europe (Finland, Norway) and the US, partnering with local data centre operators to ensure compliance and reach.'Customers expect availability. If your site shows zero GPUs, they bounce,' said Sen. 'So we're launching regions in key markets to stay competitive.'
Time of India
28-05-2025
- Business
- Time of India
India's first AI-focused SEZ to come up in Chhattisgarh
India's first AI SEZ in Chhattisgarh RackBank to invest Rs 1000 crores Raipur: In a landmark development, India's first Artificial Intelligence (AI)-centric Special Economic Zone (SEZ) will be established in Nava Raipur in Chhattisgarh. Designed exclusively for the advancement and operations of AI and computer data technologies, the government expects it to catapult the region into the national and global spotlight as a leading digital and technological hub. The project will be spearheaded by a private limited data company with an estimated investment of Rs 1000 crore. Spanning approximately over six acres, the SEZ will feature a state-of-the-art 1.5 lakh square feet data center, equipped with high-performance computing systems and servers capable of powering advanced AI requirements. Four high-density data centers are planned to support digital infrastructures across multiple states. Chief Minister Vishnu Deo Sai lauded the project as a 'new beginning for the state', highlighting its potential to generate employment for the youth and establish the state as a technological force on the national stage. He emphasized that the AI SEZ aligns seamlessly with the visions of Digital India and Make in India. 'This initiative is a strategic leap that positions India not just as a consumer of AI services, but as a self-reliant producer and host,' said Narendra Sen, CEO of RackBank Data Centers Pvt Ltd, at the event announcing it. He added that the data center will create jobs for IT engineers, data scientists, cybersecurity professionals, and network managers. The company plans to collaborate with ITIs, engineering, and polytechnic colleges of the state to launch specialized training programs, preparing students for future roles in the AI industry. The ambitious plan of this SEZ thinks that Global giants like Google, OpenAI, Microsoft, and Meta may host their AI services from this center. For the first time, India will not merely consume these services but also offer a domestic base for their operations, marking a new jump of the state in future technologies. The state government thinks that beyond its technical significance, the project promises wide-ranging socio-economic impact. Students from remote and tribal regions will have national and international level opportunities right in the state. The plan projects that in a world increasingly shaped by artificial intelligence, across language, education, health, and agriculture, this SEZ represents a bold step toward positioning Chhattisgarh inside India and outside, at the forefront of the digital revolution.
Coin Geek
28-05-2025
- Business
- Coin Geek
India bares first AI-based data center park in Chhattisgarh
Getting your Trinity Audio player ready... In a significant step toward bolstering India's digital infrastructure, the state of Chhattisgarh in east-central India has launched the foundation for the country's first artificial intelligence (AI)-based data center park. The facility was inaugurated by the state's Chief Minister, Vishnu Deo Sai. The initiative is reportedly projected to generate approximately 2,000 employment opportunities, 500 of which will be direct jobs. It emphasizes the recruitment of local talent. Data centers are vital to AI development and deployment, providing the advanced computing capabilities, vast storage systems, and high-speed connectivity essential for modern AI technologies. The data center industry is rapidly expanding, driven by the growth of digital services and increased demand for robust infrastructure. The Chhattisgarh facility, occupying 5.5 hectares, will be operated by RackBank Datacenters Private Limited. Of this, 2.7 hectares will be designated as a Special Economic Zone (SEZ), entirely devoted to AI-oriented services and infrastructure. The project's first phase will begin with an energy capacity of 5 megawatts (MW), with plans to scale up to 150MW. Beyond data storage and management, the park will offer specialized services in AI, financial technology, health technology, defense, and data analysis. The infrastructure will feature GPU-powered high-performance computing systems along with capabilities for real-time data streaming, processing, and AI-driven solutions. The Chief Minister reportedly described the initiative as a foundational step toward ushering in a new era of technological empowerment and economic growth. 'This isn't just a data centre—it's the digital backbone for progress and inclusion,' he remarked. According to government officials, the center will also support agricultural development by providing precise weather predictions and crop management tools. Additionally, it aims to enhance tribal populations' access to education in remote areas. RackBank, which will operate the Chhattisgarh facility, is a leading data center located in Central India. It offers fast and low-latency connectivity across the country, ensuring smooth and efficient business performance. RackBank said it provides scalable solutions for various industries, including real estate, media and video streaming, IT services, and bulk messaging. Its services help businesses manage essential needs like data storage, security, and distribution. RackBank said it supports companies in handling their digital infrastructure and growing their online presence. India's data center market is on a steep upward trajectory. As noted in the 2024–2025 Economic Survey, the market is set to grow from $4.5 billion in 2023 to $11.6 billion by 2032, marking a compound annual growth rate (CAGR) of nearly 11%. 'India benefits from lower construction costs, owing to its well-established IT and digitally enabled services ecosystem, as well as relatively affordable real estate with a median of $6.8 million per megawatt (MW) in 2023, compared to $9.17 million in Australia, $12.73 million in Japan, and $11.23 million in Singapore,' the Economic Survey pointed out. India's total colocation data center capacity hit 977MW in 2023, with a year-on-year growth of 105% as 258MW were added during the year. Between 2024 and 2028, another 1.03 gigawatts (GW) is under construction, and an additional 1.29GW is in the planning phase. In another major development, India is on course to host the world's largest data center by capacity. Mukesh Ambani's Reliance Group is investing in advanced AI chips from Nvidia (NASDAQ: NVDA) and is constructing a massive data center in Jamnagar, Gujarat—the home state of Prime Minister Narendra Modi. This upcoming facility is expected to deliver an unprecedented capacity of 3 gigawatts, significantly outpacing the world's largest current data centers, which remain under 1GW in size. In order for artificial intelligence (AI) to work right within the law and thrive in the face of growing challenges, it needs to integrate an enterprise blockchain system that ensures data input quality and ownership—allowing it to keep data safe while also guaranteeing the immutability of data. Check out CoinGeek's coverage on this emerging tech to learn more why Enterprise blockchain will be the backbone of AI . Watch: 'Disruptive' blockchain can be useful for India title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Economic Times
28-05-2025
- Business
- Economic Times
A compelling economic logic is leading India's big data push away from major coastal centres, deep into the inlands
Agencies Trailblazers in data biz do not underestimate the challenges ahead. Issues like reliable grid power, fibre backhaul, and the availability of skilled technicians remain ongoing concerns. India's big data push is unfolding in an unconventional way, with more and more companies deviating from the tried-and-tested global playbook on data centres business, ToI reported on May 28. Most new players are setting up their data businesses inland rather than on major, established coastal hubs such as Mumbai and Chennai, ToI's report (by Akhil George) said. Narendra Sen, at the helm of RackBank, a data centre firm based in Indore, oversees a substantial 10-megawatt facility situated on the periphery of Madhya Pradesh's capital. Additionally, he is in the process of developing two more data centres, with one of them located in Raipur, and has also acquired land for a fourth site. Rather than pursuing the bustling markets of Mumbai's eastern coastline or Chennai's shores—both of which are well-known for being landing points for submarine cables that support the global internet—Sen focused on the affordability of land. 'In Indore, we purchased land for approximately 30 lakh an acre,' Sen told ToI.'In contrast, a comparable plot in Mumbai approaches 30 crore. If you invest heavily, you must also sell at a high price. Indian startups cannot sustain that.' The availability of low-cost land is just the initial step in Sen's mission for affordability. Since energy costs represent the largest expense for data centre operators, RackBank has successfully negotiated a state subsidy that reduces its electricity tariff to around 6 per kilowatt-hour, which is less than half of what is charged in Mumbai. 'We believe we can operate at 40% lower costs than a tier-one data centre, while still adhering to the Uptime Tier IV standards, which signify the utmost reliability in data centres,' he approach—positioning capacity in areas with ample land and power rather than in regions where submarine cables are installed—is swiftly gaining traction in the industry. Vipul Kumar, the vice-president for edge and network at CtrlS Datacentres, acknowledges the clear shift in momentum. 'We have already launched edge data centre operations in Patna and Lucknow and are broadening our reach into cities like Ahmedabad, Bhubaneswar, Guwahati, Bhopal, Jaipur, and Nagpur,' he states. For Kumar, the reasoning behind this shift is both strategic and economic. He asserts that decentralizing data centres is crucial for India's digital advancement. 'Our facilities in these emerging cities are specifically designed to provide low latency, meet data localization standards, and offer cost-effective solutions,' he explains. Ashish Arora, the CEO of Nxtra, a subsidiary of Airtel, emphasizes that with the increasing demands from over-the-top (OTT) services and content delivery networks for fast and efficient content distribution, edge data centre networks have become essential. The company currently operates over 120 edge facilities across more than 65 cities, in addition to 14 hyperscale data centres, ensuring uninterrupted streaming capabilities even in smaller urban platform Infibeam Avenues is banking on a network of smaller facilities for its future. Chairman Vishal Mehta indicates that they are planning to establish a series of 1 to 2-megawatt data centres in at least ten cities, with each facility costing between 20-50 crore. He believes that this decentralized model not only mitigates risk but also supports low-latency AI operations and can break even within a two-year further notes that this inland shift is transforming the landscape of corporate real estate. 'Global Capability Centres (GCCs), which were once concentrated in major metropolitan areas, are increasingly exploring tier-2 and tier-3 cities. The combination of advanced digital infrastructure, cost advantages, and available talent is turning cities like Gandhinagar, Kochi, and Jaipur into hubs of innovation,' he previously highlighted, the economic advantages of the heartland are compelling. Land prices in regions such as Vidarbha or Bundelkhand are a fraction of those in Mumbai; energy is more affordable and, importantly, more readily also plays a crucial role in this transition. A commonly accepted guideline suggests that one millisecond of round-trip delay is equivalent to approximately 100 miles of fibre. An Indore-based server farm is positioned almost equally between Delhi, Mumbai, Hyderabad, and Ahmedabad, allowing it to reach half of India's population in under 10 milliseconds. 'For a streaming service or a payment gateway, that level of latency is adequate,' Sen serves as the final driving force behind this shift. Training a large language model can consume more energy than what a thousand households in India would use in a year and requires meticulously coordinated GPUs. 'AI represents a completely different battleground,' Sen observes. 'The United States is in the lead, China is following closely, and India must establish its own sovereign computing infrastructure if we wish to remain competitive.' RackBank intends to implement Nvidia's upcoming Blackwell chips within the next six months and promote a sovereign 'supercloud' for Indian developers. CtrlS is integrating hybrid renewable energy sources, Nxtra is experimenting with fuel-cell technology, and Infibeam's facilities are designed to accommodate phased GPU upgrades as demand these initiatives could serve as models for rapidly developing regions in places like Africa and Latin America. 'If computing resources remain expensive, only large corporations will be able to innovate,' Sen argues. 'By providing affordable GPUs in tier-two cities, even a college student could refine a healthcare model using local data. This approach is how we can uncover the UPI or Aadhaar equivalents for the AI era.' He believes this principle is applicable to many nations the trailblazers in this sector do not underestimate the challenges ahead. Issues like reliable grid power, fibre backhaul, and the availability of skilled technicians remain ongoing concerns. 'The reliability of power infrastructure continues to be a major issue in various locations,' Kumar concedes, highlighting the necessity for significant investments in redundancy. Mehta echoes this sentiment, noting that many tier-2 areas still lack the grid stability and integration of renewable resources required for large-scale data centre technological innovation is aiding in bridging the reliability gap. RackBank's pre-engineered, single-story structures can be constructed within six months—one-third of the time it would take to build a vertical city centre tower—and the company's patented immersion cooling tanks can reduce energy consumption for cooling by 60%. Similarly, CtrlS and Nxtra are adopting modular strategies; Infibeam distributes its IT load across several micro-grids to eliminate single points of failure.
