AI infra firm RackBank gets land in Indore, Raipur for data centres
The firm, which recently launched an AI cloud business unit called NeevCloud, has acquired six acres of land in Indore for an 18 megawatt facility and 13 acres in Raipur for a 100 megawatt facility, Narendra Sen, founder and CEO of RackBank and NeevCloud, told ET.
These investments are supported by state governments of Madhya Pradesh and Chhattisgarh respectively in form of power subsidies and other benefits. To maintain competitive pricing for on-demand GPUs (graphics processing units), neocloud firms need to cut fixed costs and operational costs, especially because GPUs guzzle immense power and water. For instance, land costs in Raipur are Rs 30 lakh per acre, less than a tenth of Mumbai's rates, and operational costs are equally compelling, Sen explained.'In tier-1 cities, it costs Rs 50 crore per megawatt to build. We do it for Rs 25 crore in tier-2. State governments like Madhya Pradesh are also supporting data centre companies with single window clearances and dedicated power supply. Our delivery timeline is nine months, as compared to metro cities where it can be 24 months,' he said.He added that RackBank's in-house immersion cooling system Varuna allows it to cut capital costs by up to 10x.The company is aiming to raise Rs 700 crore debt to fund this expansion. This comes after it raised a $16.5 million (nearly Rs 138 crore) equity seed round in March 2025 from D-Street investors like Ashish Kacholia and Madhulika Agarwal.'We want to become the CoreWeave of Asia Pacific,' he said, referencing the US-based AI cloud startup that recently went public after a meteoric rise.Launched in 2023, NeevCloud currently operates a cluster of over 700 GPUs, including Nvidia H100, H200, MI300 and plans to add the latest Blackwell GPUs in Raipur soon. NeevCloud's model focuses on enterprise AI workloads, medical diagnostics and government partnerships.
'Hyperscalers like AWS and Azure dominate the general cloud, but they don't have enough GPU capacity in India. Startups are hungry for training and inference compute, and they're willing to switch providers,' said Sen. 'We're already seeing strong traction from AI startups and healthcare firms.' On the global front, NeevCloud is also setting up presence in Europe (Finland, Norway) and the US, partnering with local data centre operators to ensure compliance and reach.'Customers expect availability. If your site shows zero GPUs, they bounce,' said Sen. 'So we're launching regions in key markets to stay competitive.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
40 minutes ago
- Time of India
Textiles exporters face fresh trade uncertainty amid Trump's latest announcements
NEW DELHI: US President 's latest tariff announcements have resulted in fresh uncertainty, with buyers expected to go slow on new orders. While textiles exporters seem to have got an advantage over Bangladesh, which has been slapped with 35% duty by Trump, industry is keeping close tabs on India's bilateral trade deal with the US as the American president has claimed the agreement with Vietnam allows him to impose a 20% tariff, although there may be product-specific concessions. Tired of too many ads? go ad free now In any case, the final word is not out on where tariffs settle in the coming weeks, with countries, including Bangladesh, once again rushing to Washington to rebalance the equations. "We need to watch how tariffs move. Buyers are a little confused at the moment," said V Elangovan, managing director of Tirupur-based SNQS International. What is adding to the complications is China. "Retailers have to fill their shelves. Last week, our merchandisers were in Shanghai, we could not compete because the Chinese were quoting better prices this year than last year. It is not clear how they can do so when the tariff for them is higher. We need more hand-holding from govt," he added. Govt and industry has been pushing for zero duty for garments and home textiles, where Indian products are competitive, although it is unlikely even if a trade deal is worked out as the Trump administration has refused to remove the 10% baseline tariff applicable on all countries. At 10%, Indian exporters are seen to be better off than rivals, provided subsidies are not doled out to Chinese manufacturers. In natural garments, where India has traditional strength, the cost disadvantage is relatively small, 3-4%. However, in synthetic garments, the gap widens to 10-11% due to higher production costs, Apparel Export Promotion Council (AEPC) said. "India, even with the existing reciprocal tariff rate (26% announced in April), will gain in export competitiveness vis-a-vis major garment exporting competing countries. Tired of too many ads? go ad free now Besides, we are quite hopeful of India striking a favourable trade deal which will further improve the competitiveness of India's apparel exports in all important US market... even a moderate reduction in the reciprocal tariff to around 15% could significantly improve our competitiveness across both natural and synthetic garment categories, thereby opening infinite export possibilities for India amid shifting global sourcing trends," said AEPC CEO Mithileshwar Thakur. With current tariff levels - India at 26%, Vietnam at 20%, and Bangladesh at 35% - India is seen to be competitive against Bangladesh in natural garments but faces pressure in the synthetics segment. "It is looking good for us and a trade deal will help," said K M Subramani, president of Tirupur Exporters' Association. The big question is the ability of Indian garment makers to manufacture on a scale, especially given their reluctance to invest in capacity addition.
Deccan Herald
44 minutes ago
- Deccan Herald
Lorry owners withdraw stir after Karnataka govt promises payment
Of the Rs 244.1 crore that the government has decided to disburse, Rs 180.63 crore will be allocated from general category quota, while Rs 43.93 crore will be sourced from Scheduled Caste Sub-Plan (SCSP), and Rs 19.52 crore from Scheduled Tribe Sub-Plan (STSP).
Time of India
an hour ago
- Time of India
Govt's MSP for mangoes a rotten deal for growers
Bengaluru: Although well-intended, the govt's market intervention to rescue mango growers from a price crash has backfired, leaving thousands of farmers worse off. They have been forced to sell their produce at a fraction of the cost of cultivation and are still waiting for payment nearly two weeks after registering. While the scheme aimed to provide relief by procuring mangoes at a minimum support price (MSP), many farmers say the compensation is so low that it's compounding their losses rather than reducing them. "Not a single beneficiary has got money although it is 15 days since 6,000 farmers registered for the scheme," said Neelatur Chinnappa Reddy, president, Kolar Mango Growers' Association. "Crops are decaying with the govt taking its time. But the main issue is the low price the govt has fixed. It does not cover even 25% of production costs." You Can Also Check: Bengaluru AQI | Weather in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru Official data shows Karnataka had a bumper yield of 10 lakh tonnes of mangoes from 1.3 lakh hectares this season. That bounty — along with low exports — led to a market glut and a sharp price crash, especially in Kolar, Chikkaballapur, Bengaluru South, and Bengaluru Rural districts. To soften the blow, the state decided to infuse Rs 101 crore — 50% to be borne by the Centre — in the market and procure 2.5 lakh tonnes of mangoes. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Drink 1 Cup Every Morning – See What Happens A Week Later! Health Watcher Undo The Indian Council of Agricultural Research (ICAR) had pegged MSP at Rs 1,616 per quintal (or Rs 16.2/kg). But the state chose to offer just 25% of this — only if market prices dipped below that level — effectively capping the payout at Rs 4 per kg. Given that average cost of production stands at over Rs 12 per kg, the scheme is being slammed as inadequate and flawed. "MSP should be increased to Rs 12 to match production cost," said Reddy. "The cap of five acres should be increased to 10 and the cap on quantity of procurement should be increased from two tonnes per acre to four." Adding to farmers' woes is a delay in payments, as Karnataka State Mango Development and Marketing Corporation has not yet opened a direct benefit transfer (DBT) account. The finance department is yet to grant approval. Reddy said the growers' association has given the govt time till Wednesday to resolve issues. "Failing which, they will lay siege to Kolar deputy commissioner's office," he said. Farmers also allege that the scheme's eligibility rules exclude most of them. Of the nearly 95,000 mango growers in Karnataka, only 6,673 have been able to register, largely because most cultivate mixed crops like ragi or green gram along with mangoes — a practice disqualified under current rules. Agriculture minister N Cheluvarayaswamy acknowledged the procedural roadblocks and said he would take up the issue with chief minister Siddaramaiah. "Although MSP for mangoes is handled by the departments of cooperation and horticulture, the CM asked me to oversee it. I will bring these issues to his notice," said Cheluvarayaswamy. Kolar district minister Byrathi Suresh also promised quick action. "I will speak to finance officials to ensure approval to open a DBT account," he said.
