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Mar 08, 2024 - 05:47
By asia.nikkei.com

NTT Data's big Indian data center push heartens investors

TOKYO -- NTT Data Group's expensive bet on data centers in India and elsewhere has dented key such indicators as return on equity, but its high stock price suggests investors are confident on future payouts.

Construction is underway to expand one of NTT Data's 14 data centers in India, where it leads a market expected to double in size in five years amid broader adoption of digital technology and artificial intelligence. The Japanese company aims to double the number of centers it runs there and triple their total capacity by the end of fiscal 2025.