Kamal Ghorui
The Reserve Bank of India has developed a high security data center in Bhubaneswar, in a move to safeguard critical financial systems and ensuring the continuity of its core operations. The location was chosen to minimise exposure to cross-border threats and seismic risks. The new greenfield facility, spread across 18.55 acres at Info Valley-II, Khordha, will host the central bank’s core computing infrastructure, supporting currency management, payment and settlement systems, and regulatory data functions, officials said. “When RBI began work on its 18.55-acre campus at Info Valley-II, Khordha in 2023, few questioned the location. Beyond logistical and operational considerations, strategic factors are likely to have weighed on decision-makers,” an analyst was cited by PTI as saying. According to the analyst, the site lies far from India’s western and northern borders, reducing vulnerability to missile or drone attacks. It also avoids the country’s high seismic risk zones, that reduces risk of damage due to any earthquake activity. He further added that the location helps to “strengthen the safety and continuity framework for infrastructure that underpins critical financial systems.” The Odisha centre is the RBI’s second, complementing its Primary Data Centre in Kharghar, Navi Mumbai. Unlike traditional data hubs such as Mumbai and Chennai, Odisha does not host major subsea communication cables, which analysts suggest reduces the risk of concentrated cyber threats and network disruptions. The importance of a secure location was highlighted last year when a major commercial bank reportedly moved its data centre operations from Jaipur to Mumbai overnight amid heightened India-Pakistan tensions, following cross-border drone activity.
Why are firms shifting to new data centers?
Financial institutions worldwide are increasingly establishing their own secure data centres, prioritising control over operations and data security rather than relying on public infrastructure, analysts say. Industry officials added that safeguarding financial data, which is now considered critical national infrastructure, remains the primary driver, alongside the need to mitigate cyberattacks and operational disruptions. Direct control also enables central banks to implement stringent security protocols, redundancy measures, and regulatory compliance. With India’s digital transactions and real-time payment systems expanding rapidly, authorities are treating robust data infrastructure as essential to financial stability rather than simply an IT asset. The RBI’s Odisha facility follows international models, such as the US Federal Reserve’s East Rutherford Operations Center, designed with layered physical and cyber protections. The new centre has been built with fault-tolerant architecture and high redundancy, earning Tier IV certification for design and performance reliability. Other institutions, including the Securities and Exchange Board of India (Sebi) and the State Bank of India (SBI), have either built or are constructing their own data centres, officials said. Analysts pointed out that Odisha provides abundant land, water, and power, while offering strategic distance from potential cross-border risks and avoiding high-risk infrastructure corridors. Its lower seismic vulnerability compared with the Himalayan belt further enhances safety. In addition to the new centre, the RBI plans to launch a pilot cloud facility in 2025, with data centres in Mumbai and Hyderabad providing local cloud storage for financial firms.
