NTT invests $59 billion in global data centers

NTT DATA CEO Abhijit Dubey discussed the recent changes in China's AI landscape and NTT's plans for expansion. He noted that China's AI model DeepSeek has shifted focus from large training setups to more efficient inferencing hardware. This change shows that using inferencing can be less expensive and more valuable than traditional training methods. Despite challenges from this shift, NTT is sticking to its investment plan. The company plans to invest 8 trillion Yen (about $59 billion) in data centers and AI from 2023 to 2027. Dubey believes that cheaper AI models will allow more businesses to adopt these technologies, which will grow the market. In India, NTT DATA has become the largest data center operator, with a market share of 30%. The company plans to invest about $500 million each year in India. Recently, it opened a new 500 MW data center park in Navi Mumbai, the largest in the country. NTT is also launching a new submarine cable system called MIST, which will connect Malaysia, India, Singapore, and Thailand, at a cost of $400 million. Dubey addressed concerns about security risks with subsea cables. He acknowledged that while there are risks, it should not stop investment in necessary infrastructure. He also commented on competition from Elon Musk's Starlink, stating that NTT does not see it as a threat. Instead, NTT is investing in satellite communications through a partnership with SKY Perfect JSAT. In the IT services sector, NTT is targeting Indian businesses rather than focusing on the North American and European markets like its competitors. Dubey believes India's potential for IT growth is immense and that Indian companies can quickly adopt new technologies. India's IT spending is expected to reach $160 billion by 2025.