RackBank's AI Power Play: Cheaper Data Centers, Smarter Future

AI infrastructure startup RackBank is expanding its data centre operations into tier-II cities such as Indore and Raipur to significantly reduce operational costs—up to two to three times lower than in metro locations.

The company, which recently launched its AI cloud platform NeevCloud, has acquired 6 acres in Indore for an 18 MW facility and 13 acres in Raipur for a 100 MW data centre. These projects are being supported by the respective state governments through power subsidies and regulatory incentives.

“In tier-1 cities, it costs ₹50 crore per megawatt to build a data centre. In tier-2 cities, we’re doing it for ₹25 crore,” said Narendra Sen, Founder and CEO of RackBank and NeevCloud. He also highlighted the firm’s proprietary immersion cooling system, Varuna, which cuts capital expenditure by up to 10x.

To support this expansion, RackBank plans to raise ₹700 crore in debt. Previously, the company raised $16.5 million in equity from D-Street investors.

NeevCloud, launched in 2023, currently operates over 700 GPUs, including Nvidia’s latest chips, and serves a diverse client base across enterprise AI, medical diagnostics, and government sectors.

News by Rahul Yelligetti.