Kozhikode: Thiruvananthapuram and Kochi have long been recognised as Kerala’s major IT hubs. However, the state’s first AI data centre for IT companies is set to come up in Kozhikode, with a German company leading the project.

Construction of a nine-storey data centre building has begun at the Government Cyberpark in Kozhikode. The data centre and an innovation hub are expected to become operational by December.

At present, IT companies in Kerala largely depend on data centres located in Bengaluru and Hyderabad. The new facility in Kozhikode is expected to provide companies with access to data centre infrastructure at a lower cost.

Nabeel Moosa, managing director, founder and CEO of Calinova, said the facility could also encourage companies operating in major IT hubs such as Bengaluru to expand their operations to Kozhikode.

"IT companies cannot operate without data centres. Companies are likely to choose cities where such facilities are available at a lower cost," Moosa said.

Several Indian companies, including those based in the UAE, have reportedly expressed interest in setting up back-office operations in Kozhikode. The availability of a data centre is expected to further support such investments.

The facility is being established in collaboration with Germany-based Allied Data Centre, which has more than two decades of experience in designing and building data centres across Europe and West Asia.

Innovation hub to support startups

An innovation hub will be established alongside the data centre to support entrepreneurs and startups with new business ideas.

Companies that provide acceleration funding to startups, including those operating in Silicon Valley, are expected to be part of the initiative. Discussions are also underway to collaborate with leading US startup accelerator Y Combinator.

Calinova will provide grants to selected startups shortlisted through the programme.

The innovation hub will help startups connect with global markets and provide them with technical support and other services.

₹1,200-crore IT project planned at Cyberpark

In the second phase, a ₹1,200-crore project will be developed at Kozhikode Cyberpark, featuring an expanded innovation hub, office space for major IT companies and a five-star hotel. Calinova has acquired 3.5 acres of land for the project, with construction expected to begin by the end of the year.

The company plans to develop two IT towers with a combined area of 15 lakh square feet. The buildings will include premium office spaces for international companies and research and development centres. Construction is expected to be completed by 2029.

Aim to build a unicorn from Kozhikode

Moosa said the innovation hub aims to help develop at least one startup from Kozhikode into a unicorn valued at more than $1 billion.

The projects are expected to create more than 15,000 jobs by 2030. Plans are also being considered to establish similar data centres in Kochi and Thiruvananthapuram in the next phase.

(To be continued)