PhonePe invests $200 mn on data centres
PhonePe, a Walmart-owned provider of payment services, announced on Thursday that it is investing USD 200 million (about Rs 1,661 crore) in the construction of data centers in the nation.
Rahul Chari, the company’s co-founder and chief technology officer, stated that other factors, such as the statutory requirement for data localization, which forbids a financial sector business from storing its data abroad, are what are driving the investments.
After the opening of a data centre facility in Navi Mumbai, Chari told reporters that PhonePe will be spending USD 200 million on data centres.
Despite claiming that the corporation has already invested USD 150 million, he could not provide a timetable for the remaining USD 50 million.
According to Chari, it is advantageous for a business like PhonePe to invest in captive data centres given the authorities’ demand for data localization and also because of the simplicity or operational flexibility it provides in comparison to an operating expenditures model.
According to the engineer, the present investments will be able to cover the capacities required to deliver on the transaction loads anticipated by the year’s end.
According to Chari, PhonePe currently processes 120 million transactions per day, peaking at 7,000 per second. The company anticipates that number to increase to 200 million transactions per day by the end of the year and to 500 million transactions per day by the end of the following year.
The first data centre in the nation featuring smart cooling technology was unveiled on Thursday by PhonePe, NTT, and Dell Technologies.
According to Chari, the smart cooling data center’s capital expenditures are greater, but after two years, they will decrease as a result of the reduced energy costs it uses than traditional data centres.