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State plans to set up govt-run cloud exchange hub to position Tamil Nadu at forefront of AI
State plans to set up govt-run cloud exchange hub to position Tamil Nadu at forefront of AI

New Indian Express

time06-05-2025

  • Business
  • New Indian Express

State plans to set up govt-run cloud exchange hub to position Tamil Nadu at forefront of AI

CHENNAI: Tamil Nadu is planning to establish a government-run cloud exchange hub, aiming to position the state at the forefront of artificial intelligence (AI) and digital innovation. The initiative, part of broader efforts to expand Chennai's data centre ecosystem, is expected to support research, analytics, and technological advancements. Speaking at the 7th ASSOCHAM Conclave on 'Smart Datacenters & Cloud Infrastructure', Palanivel Thiaga Rajan, the state's Minister for Information Technology and Digital Services, said that if Chennai captures a significant share of India's growing data infrastructure market, it could provide a 'strong foundation for the AI industry'. Chennai's data centre capacity is projected to increase from 202.43 MW in 2025 to 551.15 MW by 2030, with a compound annual growth rate of 22.18%, according to PwC. The city's strategic coastal location, infrastructure, and government policies are driving investment. The Tamil Nadu Data Centre Policy 2021 has played a key role, offering tax breaks, land subsidies, and power tariff concessions to attract developers. These measures, Rajan said, are laying the groundwork for both digital infrastructure and broader economic transformation. PwC's report calls for further policy enhancements, including incentives for sustainable and energy-efficient data centres, expanded renewable energy support, and clear public-private partnership (PPP) guidelines. It also recommends streamlined regulatory processes and training programmes to develop a skilled workforce for the sector. With the adoption of hybrid and multi-cloud strategies rising across enterprises, demand for scalable data infrastructure is growing. The spread of AI and big data analytics is also driving increased investment in high-capacity, energy-efficient facilities, the PwC report said. Beyond Chennai, other cities such as Coimbatore and Madurai are also poised to benefit. The PwC report said Coimbatore's strong industrial base and educational ecosystem alongside Madurai's growing IT workforce make them attractive locations for data infrastructure growth. With supportive policies, a skilled workforce, and accelerating investment, TN is positioned to become a national leader in digital infrastructure, paving the way for AI-led innovation.

International university looking to set up campus in Tamil Nadu, says Palanivel Thiaga Rajan
International university looking to set up campus in Tamil Nadu, says Palanivel Thiaga Rajan

The Hindu

time05-05-2025

  • Business
  • The Hindu

International university looking to set up campus in Tamil Nadu, says Palanivel Thiaga Rajan

Tamil Nadu Minister for Information Technology and Digital Services Palanivel Thiaga Rajan said on Monday (May 5, 2025) that an international university is looking to set up a campus in Tamil Nadu. Speaking at an industry event, the Minister said he attended a meeting with Chief Minister M.K. Stalin on Monday, wherein officials from the university had participated. 'When I was Finance Minister, in my Budget speech, I had announced that a knowledge city would be developed through international collaboration,' Mr. Thiaga Rajan said, addressing the 7th Associated Chambers of Commerce & Industry of India (ASSOCHAM) Smart Datacenters and Cloud Infrastructure Conclave 2025, with the theme, 'Empowering Global Digital Change: Tamil Nadu's Data & Cloud Vision'. 'The knowledge city will come up in 2,000 acres, where we will have a smart sustainable hub of academia, tech, fintech, and living arrangements. The university meeting this morning was part of this discussion,' he said. Mr. Thiaga Rajan, however, did not mention the name of the university. An official note from the State government earlier in the day said Diane Smith-Gander, Chancellor, University of Western Australia, and Jennifer Howell, Pro-Vice Chancellor, met Mr. Stalin and held discussions. Mr. Thiaga Rajan also pointed out that Tamil Nadu's gross enrolment ratio in higher education has increased to over 50% in the last four years, from around 45-46%, when the DMK government assumed office. This was enabled particularly through programmes that incentivised unprivileged girls from the government schools to join higher education, he said. Mr. Thiaga Rajan said one of the key strengths of Tamil Nadu is its human capital, and along with it an overall development makes the State an attractive investment destination. 'I think Tamil Nadu will be well-positioned as the innovation hub. We have a lot of data, data centres, and many talented people, and these are the building blocks for innovation and AI,' he said. Knowledge report released Mr. Thiaga Rajan also released a knowledge report by ASSOCHAM and audit firm PwC. As per the knowledge report, Tamil Nadu, particularly Chennai, is emerging as a significant data centre hub in India. The Chennai data centre market is projected to grow from 202.43 MW in 2025 to 551.15 MW by 2030, at a compounded annual growth rate of 22.18%. This growth is driven by the city's strategic location, robust infrastructure, and supportive government policies. The Tamil Nadu Data Centre Policy 2021 provides incentives such as tax benefits, land subsidies, and power tariff concessions, further boosting the market, it said. Surajit Chatterjee, Managing Director, Data Centre, India, CapitaLand Investment and Co- Chair, ASSOCHAM National Council on Data Centres, Max Parry, Head - Business Development, Equinix APAC, Ashok Mysore, President, CtrlS Datacenters Ltd, Jatinder Singh Pabla, Chief Sales and Marketing Officer, STT GDC India and Co-Chair, ASSOCHAM National Council on Data Centers, among others, spoke at the event.

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