Interview with NTT GDC’s Alok Bajpai

India’s data centre (DC) landscape is witnessing an unprecedented transformation. From a nascent industry a decade ago to a rapidly expanding ecosystem poised to reach multi-gigawatt scale, the sector’s evolution has been exemplary. At the forefront of this transformation is NTT Global Data Centres, a company that has witnessed and shaped India’s DC journey for over two decades. Representing a blend of global expertise and local understanding, NTT GDC has positioned itself as a market leader in the Indian DC market. In an interview with tele.net, Alok Bajpai, Managing Director, NTT Global Data Centres India, talked about the company’s journey and strategic priorities in the Indian DC market. Edited excerpts…

How has the Indian DC market evolved?

The evolution has been quite interesting to observe. Initially, it started with enterprise demand, particularly from the banking, financial services and insurance sector. Then it shifted to cloud adoption, 5G deployment and broader digital transformation initiatives, including public infrastructure digitalisation. The focus has now moved to artificial intelligence (AI) and machine learning (ML) workloads.

The data centre industry in India is entering a pivotal phase of transformation. The developments we are witnessing in the digital economy, from cloud computing to AI, are all catalysts for the stupendous growth trajectory that lies ahead for this industry.

How has NTT GDC’s journey been in India so far?

We started our journey in India 25 years ago, at a time when the DC industry was still largely unfamiliar to most businesses. Around 10 years ago, NTT Japan acquired the company, which marked a pivotal turning point. Investments started flowing in, and instead of renting space, we began purchasing land and building our own DCs. Today, all our facilities are fully owned by us.

When I joined NTT GDC, about eight years ago, the DC industry was just taking off in India, with the country’s total installed capacity barely over 300 MW. Now, NTT GDC alone has about 350 MW of installed capacity across India.

What significantly helped us was the strong backing from NTT Japan in terms of both financial stability and technological support. Having a Japanese parent made a substantial difference because of the sheer scale of investment in research and development.

NTT GDC also brings a strong legacy and deep understanding of the telecom business. Unlike many newer entrants in the market, we are more than just a DC provider – offering a comprehensive suite of technology solutions. We also have sister companies that provide managed, security and infrastructure services. This has enabled us to offer a complete range of solutions, from core colocation services to connectivity and other managed services.

All these factors combined have made NTT GDC’s journey in India quite unique.

What is NTT GDC’s current operational capacity in India? What are the expansion plans for the next year or so?

We have 21 operational DCs with a total capacity of 350 MW. In addition, we have another 150 MW under development. Once that comes online, likely within the next 9-12 months, we will be looking at a total capacity of around half a gigawatt.

Most of the players are now looking to cater to the hyperscaler demand. What is your strategy regarding hyperscalers versus enterprise customers?

When we started 15-20 years ago, hyperscalers did not exist yet. We began with enterprise customers who had smaller but more comprehensive end-to-end needs. They wanted not just space and power, but also complete managed services. That is the foundational model we started with, and we have remained committed to it.

Unlike others focused solely on volumes, we prioritise quality clients. These enterprise customers may be smaller in scale but still contribute approximately 25 per cent of our business. Their needs are broader and more complex, and we are uniquely equipped to meet these requirements.

So, while others focus exclusively on hyperscale and large clients, we continue to serve smaller enterprise customers as well. This diversified approach provides us with stability and sustainable growth.

What initiatives is NTT GDC taking on the sustainability front? Where does Indian operations stand in terms of renewable energy adoption?

We have a global target of reaching net zero by 2030. It is a company-wide commitment from NTT GDC, and our India operations will align with that ambitious goal.

We have over 300 MW of installed solar and wind capacity in India. However, due to renewable energy banking regulations, transmission losses and other regulatory factors, we cannot utilise the full installed capacity. That said, we are currently meeting approximately 30-35 per cent of our total IT power consumption through renewable sources.

How critical is the transition to advanced cooling solutions?

We must transition to liquid cooling technologies. In fact, NTT GDC was the first company in India to implement liquid immersion cooling, almost two years ago, when few were discussing this technology. We already have operational systems in place.

Even globally, in the US, we are currently running approximately 200 MW of AI load using liquid cooling systems. These investments are essential rather than optional.

Many data centres currently under construction are being re-evaluated because customers inquire whether they can be converted, depending on factors like floor-to-ceiling height and physical layout, to support these advanced cooling technologies.

How are you using AI to make your operations more efficient?

We have started implementing AI-powered monitoring systems, for example, to track energy consumption and improve operational efficiency. We are also applying AI in areas like preventive and predictive maintenance. These are practical ways AI is helping improve our internal operations and drive growth, beyond just supporting client-side AI workloads.

How do you view the growing competition in the Indian DC market?

While there are several new entrants, not everyone will be able to sustain operations long-term. The barriers to success are substantial – enormous CapEx requirements, complex regulatory compliance and significant time delays between construction investment and revenue generation. Not everyone can overcome these challenges. This business requires a long-term vision. Equally important is the technology component, where companies need to be future-ready – which NTT GDC certainly is. We are not just adopting existing technology; we are creating innovative solutions and helping shape the industry’s future.

What are your views on the policy framework guiding the DC industry in India?

One critical issue pertains to DC policies being state-specific. There is a lack of a comprehensive national DC policy, and that is something we urgently need. Approval processes and compliance requirements vary widely between states and often lack transparency. This industry requires more streamlined, transparent and faster approval processes from government authorities.

On the sustainability front, as the industry expands and accelerates the shift toward higher renewable energy adoption, government incentives are required to support and encourage this transition.

Another key challenge is the lack of skill development. With rising competition and rapidly evolving technology, there is a shortage of qualified talent equipped to manage these complex systems. Whether through public initiatives or public-private partnerships, more cohesive and focused skill development programmes are required.

Looking ahead, what are NTT GDC’s strategic priorities for growth in India?

Our strategy rests on three fundamental priorities. First, sustainability is absolutely non-negotiable. It is one of our key strategic pillars. We are committed to net zero by 2030, and we are fully on track to achieve this ambitious goal.

Second, growth for us is not about chasing scale for its sake. We are not in the business of speculative builds. We focus on maintaining close relationships with our customers, especially our strong base of enterprise clients. We already serve over 300 enterprise customers, including most of India’s major banks as well as several foreign banking institutions.

Third, our approach centres on partnerships. We grow alongside our clients. Their evolving needs shape our development roadmap.

This approach has served us well for over 25 years, and it will continue to guide our strategic direction as we navigate India’s evolving DC landscape.

How does the future look for India emerging as a global DC hub?

Previously, everything was regional and country-specific. There was no consideration of data originating in the US, being stored in India, processed here, and returned. This simply was not feasible given latency constraints.

However, with AI and ML emerging, there exists a genuine possibility – a very high likelihood of computational concentration flowing into Southeast Asia. Several major international customers are considering processing most of their AI requirements in Southeast Asia, including India.

India’s growing prominence is definitely materialising. Economics plays a significant role – construction costs in India are less than half those in the US, approximately one-third of Europe and possibly one-sixth of Japan. Power constraints are also less severe than in several other regions. With all these advantages, I believe there is a strong possibility for India to assume global leadership.