The Hiranandani Group will spend $39,000,000,000 on a data centre in Noida.

With an investment of 39,000 crore, the Hiranandani Group intends to increase the operating reach of Yotta Infrastructure, its data centre business, in Greater Noida. The UP chief minister has already officially opened the center’s first phase.

The company’s additional investment will be used to build the campus for the data centre, buy hardware for Yotta and its clients, and establish the IT infrastructure. The state government set a goal of 20,000 crore in investments in the state over five years when it announced a data centre strategy last year, but it reached that goal in just one year.

By 2025, it is anticipated that India will have invested more than $20 billion in data centres. The state has proposed to build 600 MW data centres from several enterprises. Yotta D1, the first of six data centre buildings in the Yotta Greater Noida Data Center Park, was constructed for about Rs. 1,500 crore. It took 20 months from construction to operationalization. Yotta D1 would receive an extra 5,000 crore in IT equipment investment once it is fully operational. The state has expedited the building of more structures while keeping in mind the rising demand.

The Hiranandani Group, a prominent Indian conglomerate, has announced plans to invest approximately $3.45 billion in a semiconductor manufacturing facility in Noida, Uttar Pradesh. This initiative is part of a broader effort by the Uttar Pradesh government to position the state as a significant player in India’s burgeoning semiconductor ecosystem.

Investment Details

The project will be executed through Tarq Semiconductors Pvt Ltd, a subsidiary of the Hiranandani Group. The facility, to be located in Sector 28 near the Noida International Airport, aims to produce compound semiconductors, silicon photonics devices, integrated circuits, and optoelectronic components. The total investment for this venture is projected at $3.45 billion. In support of this initiative, the Uttar Pradesh government has extended financial incentives exceeding $855 million.

under its Semiconductor Policy-2024. These incentives encompass a 75% rebate on land costs, valued at approximately $39 million, and full exemptions on stamp duty and registration fees, amounting to around $3.6 million. Additional benefits include a decade-long exemption from electricity duties, dual power grid support, and subsidies for water and power consumption. The government has also established provisions for workforce development, offering annual internship support for 500 engineering students and a talent attraction grant of approximately $120,000 per unit.

Strategic Significance

This investment aligns with India’s strategic vision to bolster its semiconductor manufacturing capabilities, reducing reliance on imports and enhancing technological self-sufficiency. The facility’s proximity to the Noida International Airport is anticipated to facilitate efficient logistics and supply chain operations, further enhancing its strategic value. Upon completion, the project is expected to generate substantial employment opportunities, with projections of 1,000 direct and 10,000 indirect jobs. Darshan Hiranandani, CEO of the Hiranandani Group, has expressed readiness to commence construction pending final approval from the central government, marking a significant milestone in the project’s timeline.

Hiranandani Group’s Technological Ventures

Beyond this semiconductor initiative, the Hiranandani Group has been actively expanding its footprint in the technology sector. In 2019, the group founded Yotta, a platform offering data center colocation solutions. Yotta has experienced significant growth, with an annual revenue of $56 million as of March 31, 2024, and a workforce of 116 employees as of November 30, 2024. The company has secured funding from the State Bank of India and is positioned among the top competitors in the data center services industs.

The global semiconductor industry is witnessing rapid expansion, driven by the increasing demand for high-performance computing (HPC) systems. Projections indicate that the HPC market will grow from $54.39 billion in 2024 to $109.99 billion by 2032, at a compound annual growth rate (CAGR) of 9.2%. This surge is attributed to the proliferation of data centers and cloud services aimed at reducing data complexity.

In parallel, the market for edge data centers is expected to nearly triple, reaching $13.5 billion in 2024 from $4 billion in 2017. This growth is fueled by the need for localized data processing to reduce latency and enhance performance, especially with the advent of technologies like 5G and the increasing adoption of software-defined networking (SDN) and network function virtualization (NFV).

The Hiranandani Group’s substantial investment in Noida’s semiconductor manufacturing facility underscores its commitment to advancing India’s technological infrastructure. This project not only aligns with national objectives of achieving technological self-reliance but also positions the group at the forefront of the rapidly evolving semiconductor and data center industries.

Group Media Publication
Construction, Infrastructure and Mining   
General News Platforms – IHTLive.com
Entertainment News Platforms – https://anyflix.in/
Legal and Laws News Platforms – https://legalmatters.in/
Podcast Platforms – https://anyfm.in/