Data centers and up: Russian banks have started to build their own data centers

The largest Russian banks have started building their own data centers. Izvestia was told about such plans by the T-Technologies group, which develops the financial and lifestyle ecosystem (the group includes T-Bank, T-Insurance, T-Mobile and others). T-Bank intends to launch two data centers (DPCs) by 2027. Sber has also started to build its own data centers, and Dom.RF is partially using its own infrastructure. Now there is a shortage of data centers in the country, and it will only grow, said in "Rostelecom-DC". Under the conditions of sanctions, the creation of their own centers allows banks to control data security, experts believe. Why such infrastructure is especially necessary for the development of artificial intelligence - in the material "Izvestia".

Why banks are starting to build their own data centers

Russian credit institutions have begun to build their own data centers. The plans to create their own network of data centers "Izvestia" told the group "T-Technology". By 2027, they plan to complete the first stage of work there, then two points will start operating. By 2031, they will reach full capacity - 50 MW each.

The data centers are designed to house servers and other IT equipment. In each of the built data centers will be installed more than 100 thousand servers, shared in the organization. They added: the company will be among the top 5 market players in the corporate segment in terms of data center capacity, as well as T-Bank will be the first bank in the world to use in data centers the technology of hybrid cooling with direct free cooling (Direct Free Air Cooling), which will reduce energy consumption and negative impact on the environment. The projected Power Usage Effectiveness (PUE) will be 1.15. This is significantly lower than the global average of 1.6, the organization explains.

The new network will make it possible to process and store data arising from servicing more than 50 million customers, T-Technologies Group said. It will support business expansion and the development of new areas, such as AI assistants for different areas of life. Own data center infrastructure will also allow the company to strengthen its position in the field of artificial intelligence, the company said. According to the organization's forecasts, the construction of its own data centers will allow T-Technologies to save 26 billion rubles by 2030, and in the future the annual savings will amount to about 10 billion rubles due to the partial refusal of expensive infrastructure rent and the combination of leased and own space.

Now many banks are moving into ecosystems, so the load on servers is growing, explained Alexei Tarapovsky, founder of Anderida Financial Group.

Their own data centers will also help reduce dependence on external limitations and support growth in conditions of computing capacity shortage, T-Technology Group added.

- The data centers will be built in special economic zones from scratch and using free cooling technology, which will be the first large-scale industrial experience of its application in the financial industry in the world. It is planned that this concept will allow not only to significantly reduce the cost of creating and operating data centers, but also to use the heat generated by the data center to heat the nearby urban development," said Vyacheslav Tsyganov, CIO, Vice President of T-Bank.

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Earlier, Sber also started to build its own data centers. For example, one of them - on the territory of the special economic zone (SEZ) in Balakovo, Saratov region.

In the bank "Dom.RF" reported that they use a hybrid approach - part of the data center infrastructure is rented, and part of it they use their own. Building their own data centers has advantages, explained Nikolay Kozak, Deputy Chairman of the Board of the financial institution. Among them are relative freedom in the distribution of computing resources, increased cyber security, independence from the plans of IT infrastructure providers and market demand.

However, there are also a number of difficulties, Nikolay Kozak added. For example, high capital costs, unprofitable "economics" with small volumes and high maintenance costs.

VTB reported that they use the services of the largest data center provider. Finding a data center to house the bank's equipment is not always a simple task, the press service added. It must have the capacity for multiple performance growth and be located at a distance from residential buildings and urban social infrastructure.

Now there is a shortage of data centers, and it will only grow, said the press service of "Rostelecom-DC". They noted: this is due to the active increase in demand and outstripping supply for cloud solutions. Companies are increasingly realizing the advantages of this approach - lower IT infrastructure costs, increased flexibility and scalability of systems, as well as rapid adaptation to changing market requirements.

In the period from 2022 to 2023, the main customer for Rostelecom Data Center was the public sector, and now large businesses are showing interest in the services, the organization noted.

What are the pros and cons of building your own data centers

At the same time, instead of renting data centers, the largest banks have started to create their own centers because of a number of advantages of this option, said Svetlana Frumina, head of the Department of Global Financial Markets and Fintech at Plekhanov Russian Economic University. According to her, it allows to expand infrastructure and use customized solutions that help to shape technological sovereignty.

She added: the growing demand for the creation of data centers is also dictated by the accelerated race for the creation of superintelligence, in which it is impossible to participate without a developed technological infrastructure.

To develop AI, banks need specialized data centers with high energy efficiency and the ability to use highly loaded racks (22 or more kW per server cabinet), explained Alexey Uchakin, Director of the Infrastructure Department of EdgeCenter. According to him, there are no such offers on the market now. Therefore, if a company has enough money, it builds a data center for its tasks. Creating a new data center costs from 170 million to 550 million rubles, said Svetlana Frumina.

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Alexander Didenko, head of the artificial intelligence laboratory of the Skolkovo School of Management, believes that banks are increasingly turning into IT companies. According to him, data and algorithms are the basic asset on the capitalization of which a modern credit organization lives. This is supplemented by very strict legal requirements for the protection of personal data.

- In the context of sanctions pressure and restrictions on international cloud services, the creation of their own data centers allows banks to control the security and protection of customer data. This is critical, as any external services can fall under sanctions, and it is important for banks to be able to store and process information inside the country," emphasized Valery Tumin, a member of the Expert Council for the Development of the Digital Economy at the State Duma Committee on Economic Policy.

He concluded: problems with access to foreign cloud providers (for example, Amazon Web Services or Microsoft Azure) encourage Russian credit organizations to invest in creating their own infrastructures.

In addition, it is an image advantage, says Alexei Tarapovsky of Anderida Financial Group. Because owning one's own center is a factor of a company's technological strength and its leadership in the market.