India in talks with UAE, others to host data embassies: report

India is in talks with countries including the United Arab Emirates (UAE) to house data their embassies in the country, Mint reported, citing people aware of the matter.

Data embassies are secure, digital extensions of a nation’s government infrastructure hosted in foreign countries. They serve as backup facilities where critical government data and services are stored and maintained to ensure continuity in case of cyberattacks, natural disasters, or other disruptions in the home country.

Talks to set up the UAE’s first data embassy in India are at an advanced stage, the report said, adding that the secure data center will allow Abu Dhabi to store a copy of sovereign data in the country and retain control over it.

The center will work on the lines of the consular divisions of embassies, the report said, adding that India is looking “to create special strategic zones where data centers dedicated to sovereign data storage of multiple nations will be stored.”

A spokesperson at the United Arab Emirates did not immediately respond to an emailed query.

Andhra Pradesh, which currently hosts the data centers of the Adani group and the Union ministry of electronics and information technology, is expected to host the first such embassy, the report added.

India is home to one of the largest communities of engineers, technicians, and management professionals in the world, making the country a top choice for skilled talent who can help build such “techno-functional ecosystem” in the country, Kshitij Kushagra, a scientist in the ministry of electronics and IT wrote in Communications Today portal in June last year.

The South Asian nation also offers one of the lowest electricity tariffs in the world to operate such data centers, Kushagra wrote, adding that the cost of setting up such a data center would be $6 per watt when compared with about $13 in Zurich and about $14 in Tokyo.

Robust digital infrastructure, strategic geographical position, and a rapidly growing digital economy also make India an attractive destination “for nation states looking to protect their data sovereignty, securing data, and mitigating unpredictable geographical catastrophes,” the article, co-authored by Deloitte Touche Tohmatsu India LLP senior consultant Abhay Bansal, said.

Estonia established its first data embassy in 2017, with the secure data center hosted in Luxembourg. The bilateral agreement between Estonia and Luxembourg was signed in June 2017, marking the official launch of the world’s first data embassy.

Countries such as Singapore, Denmark, and the Netherlands have shown interest in adopting the data embassy model to enhance national cybersecurity and ensure operational continuity.

Israel has also considered establishing data embassies to safeguard critical government data against cyber threats. While the exact locations and partnerships are not publicly disclosed, the country has been exploring similar models.