On Thursday, a top official from Walmart-owned payment services firm PhonePe announced it would invest $200 million (Rs 1,661 crore) in developing data centres in India.
Rahul Chari, the company’s co-founder and chief technology officer, said the statutory requirement for data localization, which forbids financial sector entities from keeping data abroad, and other factors drove the expenditures.
Chari said PhonePe should invest in captive data centre due to regulators’ data localization mandate and the flexibility it affords compared to an operational expenditures model.
Company co-founder and chief reliability officer Burzin Engineer said the USD 150 million investments will increase capacity to over 14 mega watt across three Bengaluru facilities and the one inaugurated at Navi Mumbai on Thursday.