Parliamentary Panel Flags Gaps in India's Data Storage and Security Measures
An Indian parliamentary panel has raised concerns over the country's limited domestic data center capacity and the risks associated with offshore data storage. The report calls for an assessment of where Indian data is stored and how breaches are handled.
India's Parliamentary Standing Committee on External Affairs has highlighted concerns regarding the nation's limited domestic data center capacity relative to its significant data generation. The committee's report estimates that India accounts for nearly 20% of the world's data but possesses only about 3% of the global data center capacity.
The report, which examines India's role in global tech diplomacy and digital governance, emphasizes the risks associated with storing and processing Indian data offshore. These risks include latency, increased costs, and critically, data sovereignty. The committee has urged the government to assess the extent of Indian data held overseas and its implications for national security and sovereignty.
The committee identified a gap between the volume of data India generates and its capacity to store and process it domestically. While the report projects growth in domestic capacity, it also notes inconsistencies in estimates and highlights the increasing demand driven by advancements like artificial intelligence.
Data security breaches and misuse of information are also central concerns, particularly with the growing reliance on AI systems. Although India has data protection legislation, the report recommends strengthening international cooperation and establishing clearer procedures for handling cross-border data breaches. It stresses the need for systematic collection of verified data on data center capacity to guide future investments.