Chinese smartphone maker, Xiaomi is planning to set up a data centre in India in 2015 for storing the local user data. The move is reportedly due to the growing concern in India about the privacy issues associated with Xiaomi phones. The company has been accused of transmitting unauthorised user data back to its servers in Beijing, China. Further, the Indian Air Force has reportedly issued alerts to its personnel and their families to not use Xiaomi phones on security concerns.

Citing the reason for the transmission of data to servers in Beijing, the company explained that the step was taken due to performance and privacy considerations. Xiaomi entered the Indian handset market in 2014 and has been selling phones through the e-commerce websites in the country.