NTT holds nearly 30% of India’s data centre market, making us the clear leader: Alok Bajpai, NTT Global Data Centres

In a candid and deeply insightful conversation with Express Computer, Alok Bajpai, MD, India, NTT Global Data Centres, lays out the company’s aggressive growth roadmap, its pioneering role in high-density AI-ready infrastructure, and why it remains India’s largest and most trusted data centre provider. From pushing innovation with liquid immersion cooling years before others to partnering with governments for digital infrastructure, Bajpai unpacks how NTT’s mix of global legacy and local foresight is driving leadership in a market teeming with new entrants and sky-high ambitions. 

Could you provide an overall view of NTT Data’s current India market operations? Where do you stand in terms of market share and the capacities built over the past 4-5 years? How is your Indian entity aligned with the global mandate, particularly regarding the overall game plan for the Indian market?

The data centre industry has undergone significant evolution, and we are at a very interesting cusp where growth is tremendous. Just five years ago, the industry was barely a gigawatt in capacity; now, individual companies are aiming for a gigawatt. NTT had a first-mover advantage by acquiring NETMAGIC, a company nearly 25 years old. We entered this industry early and have grown due to this advantage, our focus on innovation and technology, and our dedication to client service and operational excellence. We have been the market leader in India for quite a number of years, currently holding almost 30% of the overall market. Globally, we are the third largest, behind Equinix and Digital Realty. We are striving to retain this number one position and market share. We have been growing aggressively and intend to continue this trajectory. In terms of capacity, we have almost 300 megawatts (292 MW to be exact) of operational IT Load capacity. Data centres currently under development will take us to 400 megawatts within the next 18 to 24 months. What we bring to the table is a full stack of infrastructure and digital platforms, including data centres, high-resilience, low-latency networks, cloud services, and managed services through our group companies. It’s a comprehensive suite of infrastructure and digital solutions.

In terms of contribution to growth, which is contributing more – core co-location services or managed services?

It is definitely the data centre industry. Managed services are not our core business; they are the core business of IT companies like Infosys and TCS. Our core business at NTT Global Datacentres is Co-location, and we focus entirely on that. As I mentioned, managed services have now been transitioned to our sister companies to ensure our focus and investments remain entirely on core data centre co-location services.

We’ve seen an influx of global players looking to expand their footprint in India through local acquisitions and partnerships, while homegrown companies are also expanding. Given the fast-changing dynamics of this market, how does NTT Data plan to sustain its leadership position and what differentiates you from competitors that makes you a trusted partner in data centres?

As you rightly pointed out, competition is increasing, which is natural with industry evolution and healthy for the market. We are not concerned by this. Those companies unable to ensure long-term stability and growth will eventually fall out. Consolidation will occur, as there are currently 20-25 different competitors compared to just two or three data centre players previously. Some are very good and healthy competitors, and we respect them, whether international or Indian. The growth in demand is so significant that there will be a share for everybody. Other companies will grow, and we will also grow. Demand will continue to outstrip supply because the global and Indian economies are becoming increasingly digital. We’ve seen the progression from financial services to e-commerce, then cloud, and now AI, where requirements for density and capacity will be phenomenal. As these demands grow, everyone will get a share of the pie.

This is a difficult industry for several reasons. Firstly, the CAPEX requirement is very high. Not everyone can sustain this kind of growth, as it needs huge capital. Only some big players will be able to do it. Secondly, technology itself and the changing technology requirements from clients demand continuous innovation, especially for new AI-specific and AI-ready data centres. Not everyone will possess the innovation capabilities and technological knowledge that we bring, given our position as number three globally and our Japanese parentage, a country known for innovation and creativity. We benefit greatly from the knowledge shared by our parent company and global data centre units.

Our reliability, operational excellence, tremendous network capability (which our parentage also enhances with low-latency, high-resilience networks), and long-standing client relationships (some clients have been with us for over 20 years in India) will help us retain leadership. We have introduced technologies in India that no one else has, such as liquid immersion cooling (LIC) and direct contact liquid cooling (DCLC), years ahead of others. We have always been trusted partners for our hyperscale and enterprise clients and are confident we will continue to be.

You mentioned your capacity touching 292 MW precisely, across 19 operational data centres. With significant investments earmarked until 2027, will we see a substantial rise in this capacity or the number of locations you operate in?

The global investment we are looking at is almost $11 billion, not specifically for India. India is a very important part of this global capital allocation. We don’t have a fixed plan for how this $11 billion will be distributed over the next three to four years; it will depend on the requirements and demands of each region. However, India has been receiving at least half a billion dollars in investments almost every year over the last couple of years, and I assume and hope this will continue. Again, it will depend on demand and our ability to acquire suitable land parcels in cities beyond the five we are already in. We are looking to enter new cities, and depending on land availability and demand, we will continue making investments in the coming years.

Are there any particular cities you are eyeing apart from the five you are currently in?

Hyderabad is definitely one of the new places we will venture into. You might have seen the news a couple of weeks ago that we signed an MOU with the Telangana government. I was in Japan for the signing, which included the Chief Minister of Telangana. Hyderabad is a definite choice because they are promoting tech parks and digital infrastructure significantly. Pune might be another city, but I can’t commit to it yet because its market is still restricted to a few hyperscale and enterprise clients. If a specific requirement comes from Pune, we may consider it as the next city. However, I believe Mumbai, Chennai, and Bengaluru, especially these three, have much higher potential for growth, and our focus will remain more on these cities rather than exploring too many new ones.

Mumbai is considered the hub, and recent reports suggested it has emerged as a major data centre market. However, given the fast-growing capacities and the overall demography of the city, do you think betting on Mumbai might be challenging in the coming times due to saturation?

Yes and no. Mumbai now includes Mumbai and Navi Mumbai, which can almost be considered different cities. Most of the growth isn’t happening in Mumbai proper because it’s saturated and very expensive. Everyone is moving into Navi Mumbai, and we are also growing significantly there. So, the expansion has already shifted from Mumbai to Navi Mumbai, and it may even go beyond that, to areas like Panvel. This is one way of spreading out of Mumbai. The second city that will grow very well is Chennai. Mumbai’s advantages include being a financial capital, a business hub, and its proximity to the sea, where undersea cables land, ensuring better latency. Chennai is also a very good candidate for the same reasons. For example, our own MIST cable, lands in both Mumbai and Chennai and is becoming operational this month. So, Chennai will have almost similar advantages as Mumbai, and it’s definitely the next city that will grow very well.

You mentioned the MIST submarine cable being commissioned this month. How will this benefit India, and how will it further enhance the country’s digital economy?

There are already undersea cables brought in by other providers, and now NTT, in partnership with other telecoms, has brought in the MIST cable connecting Southeast Asia (Singapore, Thailand, and Malaysia), which then connects us to the world. The more fibre brought into India, the more the capacity for international connectivity, redundancy, and resilience increases. As the digital economy grows, this capacity becomes essential. One aspect is the capacity to store and compute data, which is what data centres provide. The other is the capacity to transmit data, which requires a strong backbone. This is why the MIST submarine cable is beneficial not only for us but for India, as it will also provide network capability to other telecom providers and hyperscale customers. This will significantly strengthen network resilience and redundancy in India.

Moving to technology, you mentioned AI and the rapid expansion of AI-driven applications. I read a very interesting statement that NTT is “AI experienced,” not just “AI ready.” Could you expand on what that truly means for NTT Data?

That’s a very interesting point, and I’ll talk about both India and our global operations. AI needs a different kind of capacity in terms of density within data centres. With high density, you need sophisticated cooling. Air cooling is insufficient for racks that are now 100 or even 150 kilowatts, compared to 5 kilowatts, which is 20-25 times more. The cooling technology must be totally different, mostly immersion-based, whether it’s direct contact liquid cooling (DCLC) or complete liquid immersion cooling (LIC) where servers are inside the liquid. NTT India did this for the first time almost two years ago. We collaborated with a customer who invested in this somewhat expensive and new technology, and it has been running for two years while others are still just discussing it in India. That’s what we mean by “AI experienced.” Similarly, globally, in America, we have 200 megawatts of capacity running on direct contact liquid cooling, which I don’t believe anyone else has. So, in India and globally, we are undoubtedly pioneers.

Does India currently have a share in that 200 megawatts?

No, that 200 megawatts is specifically within America. In India, we have 5 megawatts that use a combination of DCLC and LIC, which I mentioned earlier.

What level of excitement are you seeing from customers regarding this AI experience, and how willing are they to invest with NTT on this front?

It’s very exciting. For instance, I met a customer recently and we had independent directors from the US discussing our AI readiness capabilities. When we presented what we’ve done, many of them, even with the US experience, said they had never seen or experienced this kind of technology. They wanted to see it, and although they didn’t have time, we showed them a video, and they were very impressed, completely awed. They remarked that we are a company with so much confidence because we did this two years ago and are also doing it in America. So, people are excited to partner with someone who has the “AI experience” rather than just talking about it. This brings us back to your initial question: you can choose a service provider who says they will deliver good service, or one who has delivered good service for 25 years. That’s the differentiator we bring.

You speak of a 25-year legacy, but sometimes organisations can get burdened by their legacy. How difficult or easy is it for NTT to navigate this?

That’s a very good point, but I must refer back to our parentage. The investments NTT is making in Japan, and subsequently the technology flowing from there to all our global units, are humongous. I don’t know the exact number, but a very high percentage of our profits, perhaps 30%, goes into R&D every year. This is precisely why we can never become outdated. Not all companies do this. NTT can, firstly, because it’s over a hundred years old and has huge profits that it can reinvest. Secondly, profit motive isn’t its sole drive, as it is partially owned by the Japanese government. These reasons make it possible and imperative for NTT to heavily invest in R&D and innovation, which they are doing.

Even in India, we have an innovation lab in Bengaluru. We are trying to bring everyone to the table in a collaborative approach—clients, academia, startups, and ourselves. This innovation hub focuses on new technologies in AI, networks, and even IT service delivery systems. Not every company can afford to make these investments, or they don’t have the intent.

When we discuss AI, we must also consider the government’s focus, particularly with the India AI Mission. What is NTT’s role in this, and how are you helping the country build its AI computing infrastructure?

There are two aspects. Firstly, we are supporting the Government of India’s AI mission by building digital infrastructure in a very robust way, whether through co-location data centres, network resiliency, or innovation labs. That’s one way we are supporting the creation of this full infrastructure platform for India, its economy, and companies. Secondly, we are partnering with state governments that want to innovate and develop tech parks. This includes Kolkata, where the state government called us, Noida, and now Telangana, which has been requesting us. We are very happy to partner with them on their journey. These are all Government of India initiatives, through state partnerships, where we are contributing in various ways to create the digital backbone they need.

You’ve also been shortlisted for the AI game plan. Will that bring more opportunities, especially in new areas, where you’ll be working with new-age companies?

By default, since we are the number one digital infrastructure provider here, NTT will be part of that. While not too much active work has started on it yet, we will definitely be involved.

In a way, it’s separate, and in a way, it relates. This is a government initiative that helps us by creating policies beneficial for digital growth in India. As I said, when you partner with the state, you can acquire land at a special partnership level, allowing for more growth. That’s how it helps. It’s not going to directly help with private companies because they operate differently and have their own requirements. However, both aspects together help: the supply side is aided by this collaboration, which then allows you to meet the demand side. So in that way, yes, it’s connected.

The DPDP Act seems to have taken a backseat lately, with little recent discussion despite yearly talks of changes—do you have any updates on its current status, especially in the context of ongoing concerns about keeping data within India’s borders?

To some extent, it has happened. If you recall, the government introduced data privacy laws a couple of years ago, perhaps three or four, mandating that all financial data be kept within India’s boundaries. That genuinely helped; there was a surge in demand from financial institutions, including credit card companies, whose data moved from centres in Europe or Singapore to India. There have been discussions for many years about applying the same mandate to social media platforms like Facebook or LinkedIn, as the country needs some control over the data and content shared there. No decisions have been taken yet. If it ever happens, there will certainly be another surge in demand because all data currently housed elsewhere by these social platforms will also come into India.

Are data centre operators prepared for it already?

Yes, not only data centre operators but also large Hyperscalers are already evaluating data centre capabilities in various countries because they anticipate they might be forced to do so eventually. If that happens, we are already servicing them.

Any progress update on the Navi Mumbai 2 data centre campus?

Navi Mumbai 2 is one of our landmark projects, and it clearly demonstrated our farsightedness and commitment to India when we invested in this huge parcel of land – over 50 acres – more than four or five years ago. At that point, who knew the demand would be so immense? Nobody was investing that kind of money. We took that leap of faith and invested in this huge tech park, which I believe is currently the largest operational tech park in India. We already have four data centres running there, and it can accommodate up to 11 data centres, with a total IT capacity of 386 megawatts  of  IT Load capacity and a facility load of almost half a gigawatt (500 megawatts). That’s pretty large. As I said, it is one of the largest. Some players have made recent announcements, but they are only at the land acquisition stage. We already have four data centres running there, and it’s a beautiful campus with all modern technologies and innovations. For instance, direct liquid cooling is implemented in one of the data centres. We also have sustainability goals we are trying to meet there. It is currently one of the largest and most innovative tech parks we have.

You made an interesting statement about companies announcing land parcel acquisitions without significant progress. While it has slowed recently, we saw many such announcements until last year. Is there a “Fear of Missing Out” (FOMO) in the game, to use modern language?

I don’t want to downplay those companies. To be honest, some of them are well-respected business houses with the wherewithal to grow. Hopefully, in five years, they will reach the size they envision and grow. However, a couple of them just make statements for the sake of making statements. The proof is evident: these statements were made years ago, yet they haven’t shown significant capacity brought into the market. They are still progressing very slowly compared to the bold claims they made. This industry takes time and a lot of investment. I’m not saying people won’t reach those goals; they will, but it will take time. It can’t happen overnight. People claiming they’ll become a gigawatt in five years—I don’t think that’s possible for new companies. For companies that have been here for some time, like us, we are number one but still at 292 megawatts. It takes a lot of time to reach the numbers people have been claiming. I think the numbers have been more aggressive than realistic, to be honest.

In terms of sustainability, which is a major focus for all leading players, what is NTT Data’s commitment?

Sustainability is both a requirement and a responsibility for us. Firstly, customers demand it because they have their own sustainability goals and want us to help them achieve those. Secondly, we have a responsibility to society to address sustainability goals. We have set a very ambitious target and commitment: to become 100% net neutral by 2030. This is an ambitious goal but achievable because we are already doing well. We have signed many long-term PPAs (Power Purchase Agreements) with wind and solar companies where we have invested our money, holding minority shares (we can’t hold majority). We’ve invested for capacity growth in both solar and wind, and we hope to reach that goal by 2030. It looks very realistic. With the direction the whole environmental movement is going, I don’t think too many companies will have much choice. They will have to transition because you can’t keep consuming black energy at the current rate, and with growing requirements, it will only worsen. Moving to sustainable and green energy will become a mandatory requirement. Companies that don’t have a roadmap now will face problems five years down the line when they are forced to make the change. It’s good to be mentally and financially prepared and have a roadmap.

What kind of roadblocks do large organisations typically face in this regard?

It essentially comes back to investment. If you don’t have a very long-term or sustainable view, you’d rather put that money into building more data centres, selling capacity, and making money. While green energy solutions help in the long run by making power cheaper for both us and customers, they require significant initial investments. Many companies making a lot of noise might not be able to do this because they would prefer to invest that money into another data centre to generate short-term profits. This is why a long-term view is paramount for this industry, and the same applies to sustainability. Only companies with the wherewithal or long-term plans will be able to achieve those numbers.