RBI Builds High-Security Data Centre in Odisha to Strengthen Financial Resilience

The Reserve Bank of India (RBI) has established a high-security data centre in Odisha as part of its strategy to safeguard critical financial infrastructure. 

The new facility is strategically located away from cross-border threat zones and high seismic-risk regions, reinforcing the central bank’s commitment to operational continuity and systemic resilience. 

This marks RBI’s second major data centre, with its Primary Data Centre currently situated in Kharghar, Navi Mumbai.

Strategic Location and Risk Mitigation

Unlike Mumbai and Chennai, which host a large concentration of India’s data centres and serve as landing points for major subsea communication cables, Odisha is relatively insulated from dense digital traffic corridors.

The importance of geographical diversification gained attention last year when a leading commercial bank reportedly shifted its data centre operations during heightened India-Pakistan tensions. Such developments have underscored the need for resilient and strategically dispersed infrastructure.

Global Trend Toward Sovereign Infrastructure

Globally, central banks and financial institutions are increasingly investing in proprietary, highly secured data centres. Direct infrastructure control allows stricter enforcement of cybersecurity standards, improved redundancy planning, and enhanced regulatory compliance. 

Financial data is considered critical national infrastructure, making protection against cyberattacks, vendor lock-in risks, and operational disruptions paramount.

The RBI’s approach mirrors global practices such as those adopted by the Federal Reserve Bank, which operates secure facilities like the East Rutherford Operations Center to ensure uninterrupted payment and settlement operations.

Tier IV Certification and Cloud Expansion

The Odisha facility has achieved Tier IV certification, reflecting the highest standards of reliability, redundancy, and fault tolerance. Additionally, as of 2025, the RBI has launched a pilot cloud initiative with data centres in Mumbai and Hyderabad to provide localised cloud storage solutions for financial institutions.

Also Read: Delhi High Court Dismisses Challenge to SEBI's Green Light for NSE IPO!

Conclusion

The RBI’s new Odisha data centre represents a strategic move toward building secure, sovereign digital infrastructure. With growing digital transactions and real-time payment systems, such investments are crucial to ensuring financial stability, cybersecurity resilience, and uninterrupted functioning of India’s core banking and payment systems.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.