RBI Establishes Strategic Data Center in Bhubaneswar to Fortify Financial Infrastructure
The Reserve Bank of India has taken a significant step to enhance the resilience of the nation's financial systems by developing a high-security data center in Bhubaneswar, Odisha. This new facility is designed to safeguard critical financial operations and ensure uninterrupted continuity of the central bank's core functions.
Strategic Location Chosen for Enhanced Security
The location of this data center was carefully selected to minimize exposure to cross-border threats and seismic risks. According to analysts cited by PTI, the site at Info Valley-II in Khordha lies far from India's western and northern borders, reducing vulnerability to potential missile or drone attacks. Additionally, the area avoids the country's high seismic risk zones, which significantly decreases the risk of damage from earthquake activity.
"When RBI began work on its 18.55-acre campus at Info Valley-II, Khordha in 2023, few questioned the location. Beyond logistical and operational considerations, strategic factors are likely to have weighed on decision-makers," an analyst explained. The location helps to "strengthen the safety and continuity framework for infrastructure that underpins critical financial systems."
Comprehensive Facility Supporting Core Operations
The new greenfield facility, spread across 18.55 acres, will host the central bank's core computing infrastructure. This infrastructure supports essential functions including currency management, payment and settlement systems, and regulatory data operations. The Odisha center represents the RBI's second major data facility, complementing its Primary Data Center in Kharghar, Navi Mumbai.
Unlike traditional data hubs in Mumbai and Chennai, Odisha does not host major subsea communication cables. Analysts suggest this reduces the risk of concentrated cyber threats and network disruptions, providing an additional layer of security for the nation's financial infrastructure.
Growing Trend of Secure Financial Data Centers
Financial institutions worldwide are increasingly establishing their own secure data centers, prioritizing control over operations and data security rather than relying on public infrastructure. Industry officials emphasize that safeguarding financial data, now considered critical national infrastructure, remains the primary driver alongside the need to mitigate cyberattacks and operational disruptions.
The importance of secure locations was highlighted last year when a major commercial bank reportedly moved its data center operations from Jaipur to Mumbai overnight amid heightened India-Pakistan tensions following cross-border drone activity.
Advanced Design and International Standards
The RBI's Odisha facility follows international models, such as the US Federal Reserve's East Rutherford Operations Center, designed with layered physical and cyber protections. The new center has been built with fault-tolerant architecture and high redundancy, earning Tier IV certification for design and performance reliability.
Direct control enables central banks to implement stringent security protocols, redundancy measures, and regulatory compliance. With India's digital transactions and real-time payment systems expanding rapidly, authorities are treating robust data infrastructure as essential to financial stability rather than simply an IT asset.
Additional Benefits and Future Plans
Analysts pointed out that Odisha provides abundant land, water, and power resources while offering strategic distance from potential cross-border risks and avoiding high-risk infrastructure corridors. Its lower seismic vulnerability compared with the Himalayan belt further enhances safety.
Other institutions, including the Securities and Exchange Board of India (SEBI) and the State Bank of India (SBI), have either built or are constructing their own data centers, officials confirmed. In addition to the new center, the RBI plans to launch a pilot cloud facility in 2025, with data centers in Mumbai and Hyderabad providing local cloud storage for financial firms.
