According to market sources, the subsidiary of petrochemicals major Reliance Industries Ltd is investing around Rs 1,800 crore to set up data centres in eight cities including Bangalore, Mumbai and Delhi.

A data centre is "farm" of high capacity servers where third party data are stored and managed. An Internet data centre provides various services like co-location servers and monitoring of network along with hundred percent uptime. When contacted with the details, a Reliance spokesperson said," No comments."Industry experts have predicted a boom in the nascent data centre business.

According to Mr BV Jagadeesh, co-founder and strategic advisor of Exodus Communications, companies can get the maximum mileage out of the Internet by relying on proper data centres.

According to Mr Vikrant SenChoudhury, chief technology officer of CalTiger.com, the level of efficiency of managing data and network can make or break a business when it has to depend on the Internet. "In the near future we will see companies in India like the US-based Exodus Communications, managing the third party servers and ensuring steady flow of secured data," Mr SenChoudhury said.

The market sources pointed out that Reliance Infocom's first data centre is ready for operation. Spread over 35,000 square feet and set up at a cost of Rs 350 crore, the data centre is located at Vasi in New Mumbai. The second unit, also in Mumbai, will be much bigger, around 1,00,000 sqft.

The sources pointed out that Reliance Infocom has roped in some blue chip companies like HDFC, IBM and MCI. Reliance will manage the data servers of these companies. Reliance Infocom has decided to lay a countrywide network of optic fibre cable at a cost of Rs 15,000 crore, connecting 167 towns and cities in India. One industry analyst said that Reliance Infocom's data centre project is in "deep synergy" with its massive programme of creating the backbone.

"The data centres will utilise the infrastructure to service the various big companies computing needs," said Mr Satish Choudhury, director of Leading Edge Technology & Consultants (P) Ltd.