The government has initiated a systematic, technology-based approach to deploy data centres, opening opportunities for industry participation, but recent natural disasters have raised serious concerns over the feasibility and risks associated with establishing the much-anticipated data centre, a top official said. “After Cyclone Ditwah, the selection of land for the data centre must be examined [...]

Business Times

Government carefully drives data centres amid Ditwah

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The government has initiated a systematic, technology-based approach to deploy data centres, opening opportunities for industry participation, but recent natural disasters have raised serious concerns over the feasibility and risks associated with establishing the much-anticipated data centre, a top official said.

“After Cyclone Ditwah, the selection of land for the data centre must be examined very carefully. Given the recent landslides, this has become a critical issue. The data centre must be built on solid ground; otherwise, the location itself could become a major business risk,” he told the Sunday Times Business.

The official added that accessibility is another key consideration, stressing that the proposed site should be easily reachable and free from traffic congestion. In addition, the establishment of a disaster recovery site is also being considered to ensure uninterrupted operations and safeguard critical government data.

The official stressed that data storage and management must be critically analysed to ensure business continuity and long-term operational stability. In line with the government’s digitalisation programme, the government cloud is considered one of the most cost-effective solutions for managing public sector data, while enabling secure inter-government data sharing to improve efficiency, transparency, and overall cost effectiveness.

Waruna Sri Dhanapala, Acting Secretary of the Ministry of Digital Economy, said that Sri Lanka’s non-aligned status in the world will be capitalised on in establishing an AI data centre, which is a key layer in digital public infrastructure. “With the non-aligned political status in the country, we are looking at AI data centres as data embassies in the country for other countries to use. In this respect, we are in discussion with hyperscalers,” he said.

Mr. Dhanapala said that the Ministry is now defining the process of clearing the land. The period for Expression of Interest for the data centres has been extended, and the Board of Investment will do a detailed discussion on securing the land, he added.

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