Govt Proposes Licensing for Data Centres

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Govt Proposes Licensing for Data Centres

In a move to regulate and secure the rapidly growing data centre market, the government has proposed a licensing system that would require any company intending to operate a data centre within the country to obtain a licence. This significant step is outlined in the draft 'Bill to Make Arrangements Regarding Information Technology and Cyber Security,' drafted by the Ministry of Communication and Information Technology. As per Section 84 of the draft bill, organisations seeking to operate data centres, provide cloud services, or both, must submit an application in the prescribed format to the Department of Customs Clearance. These organisations will then undergo testing procedures to ensure compliance with established standards. 

This bill marks the government's first effort to define and regulate data centre operations in the country. Data centre and cloud service providers must obtain a licence within a year of the legislation coming into effect. The bill outlines an annual licence renewal process to ensure continuous compliance with regulations. Additionally, the draft bill highlights the significance of disaster management systems for licensed data centres, outlining specific requirements for their operation.

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