Zoho to Set Up ₹306-Crore Data Centre in Odisha

Move aligns with state’s Data Centre Policy 2022, boosting digital ecosystem

Bhubaneswar : In a major boost to Odisha’s technology infrastructure, software giant Zoho Corporation has announced plans to establish a new data centre in Khordha with an investment of ₹306 crore. The development comes after the state government approved the proposal under the Odisha Data Centre Policy 2022, which aims to transform the state into a hub for data-driven services.

The decision was finalised during the 135th meeting of the State-Level Single Window Clearance Authority (SLSWCA) held in March this year. Zoho’s founder, Sridhar Vembu, confirmed the move and highlighted the company’s commitment to keeping all user data within India.

Unlike many global tech players, Zoho has consistently emphasised data localisation. Currently, the company operates data centres in Mumbai, Delhi, and Chennai. With the upcoming Odisha facility, Zoho aims to further decentralise its storage network while ensuring secure and efficient data services for millions of users.

The Odisha government views this as a strategic step toward enhancing India’s digital sovereignty. By hosting critical user data within the country, the state will not only strengthen cyber security but also generate new opportunities in IT infrastructure and allied services.

The establishment of Zoho’s data centre is a direct outcome of Odisha’s proactive Data Centre Policy 2022, which provides incentives for private players to invest in data parks, cloud infrastructure, and digital innovation hubs. Officials have described Zoho’s investment as a “milestone project” that can attract further IT investments to the state.

Khordha, chosen as the location for the project, has been emerging as a preferred destination for IT and ITeS companies due to its connectivity, skilled workforce, and policy support. The facility is expected to create direct and indirect employment opportunities for local youth while strengthening the overall digital economy of Odisha.

Zoho’s expansion in Odisha comes at a time when its messaging platform, Arattai—launched in 2021—has been gaining unprecedented traction. Named after a Tamil word meaning “chat,” Arattai was developed as a homegrown alternative to WhatsApp and has been positioned as a secure communication platform with end-to-end encrypted calls.

The app offers voice and video calling, group chats, and file-sharing features, with plans to soon extend encryption to text messages as well. Unlike foreign competitors, Zoho has kept Arattai open and transparent, further boosting trust among users.

The popularity of Arattai skyrocketed after Railway Minister Ashwini Vaishnaw began using Zoho’s office products in line with Prime Minister Narendra Modi’s call to adopt swadeshi technologies. Since then, Zoho has found itself in the spotlight as a leading example of India’s capability to build world-class digital products.

Between September 21 and 27, the app recorded a 185 percent increase in downloads in India, with daily active users rising nearly 40 times. Previously, Arattai averaged only around 300 daily downloads, but since late September, the figure has crossed one lakh downloads per day.

This surge has forced Zoho to rapidly scale up its infrastructure. While the app earlier managed around 3,000 daily sign-ups, the number has now crossed 3.5 lakh registrations per day. The Odisha data centre is expected to play a crucial role in handling this rising demand.

With Zoho’s ₹306-crore investment, Odisha is strengthening its position as a preferred destination for technology companies. By providing policy incentives, infrastructure, and talent support, the state government is aiming to make Odisha a data centre hub of eastern India.

The new facility will not only support Zoho’s products, including Arattai, but also contribute to India’s broader goal of reducing dependence on foreign digital platforms. For Odisha, the project marks a decisive step toward becoming a knowledge-driven economy, with long-term benefits for industries ranging from IT services to e-governance.

As Chief Minister Mohan Charan Majhi has often emphasised, Odisha is keen to attract world-class investments that align with Atmanirbhar Bharat and Digital India. With Zoho’s entry, the state has taken a bold stride in that direction, setting the stage for more global and domestic tech players to follow suit.