Cypher: A significant leap in data localisation
Once the data protection law is passed, local storage of data is likely to become a big business. Fortunately for Cypher, it already has a head start in the game
Inside the Sheikh Hasina Software Technology Park in Jashore, there is a lake. On one side, a tall Multi-tenant Building (MTB) and a hotel stand face to face. On the other side of the lake, a new two-storey construction, painted entirely in red, catches the eye.
It looks like a tiny fort, but it is not constructed with bricks and cement. Instead, it is made with prefabricated containers.
A banner hanging from the rooftop read 'Unveiling Cypher.' This was the scene on 22 February, as Axentec PLC, a subsidiary of Robi Axiata, introduced Cypher as the country's first tier IV commercial data centre.
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Axentec commenced its operations on 1 January this year as the digital solutions and services provider wing of Robi Axiata Limited. Robi has invested $13 million or nearly Tk143 crore into the Cypher project.
"We launched our first data centre back in 2015. Our long learning experience throughout this journey has encouraged us to take this big step to launch a tier IV commercial centre. Our core motive was to localise our data and keep it at home," said Axentec's Managing Director and CEO Adil Hossain Noble.
A tier IV data centre is the pinnacle of modern data management facilities, possessing a range of security features. For instance, Cypher includes the ability to provide 35 hours of generator backup coupled with another half an hour of battery backup in case of a major electrical outage.
It can also keep running despite a single outage or failure, it requires less than 26.3 minutes of downtime per year or a 99.995% uptime annually with built-in redundancies for all components.
The National Data Centre is the only other tier IV data centre in Bangladesh, located at the Bangabandhu Hi-Tech City in Gazipur and run by the Bangladesh Data Centre Company Limited (BDCCL).
However, it only hosts government data. So, private organisations have always required a commercial solution for local storage.
Take banks and financial institutions for instance. As per the Bangladesh Bank's regulations, financial institutions in the country are not allowed to store data outside of the country. In fact, the recent draft Data Protection Act establishes some restrictions related to the processing, storage and transfer of data. However, managing data internally is generally very costly for a commercial firm.
That is where Cypher steps in with its telco-grade server, ensuring seamless 24/7 operation.
Banks and financial institutions are the primary target clients for Cypher. However, any other business entity can preserve its data at the centre.
Many companies have already reached out to seize this opportunity, according to Shahed Alam, Chief Corporate and Regulatory Officer of Robi Axiata Limited.
Then there is the matter of data security.
In 2021, for instance, Facebook compromised three million Bangladeshi citizens' data.
"We are regularly sharing our personal data with global companies like Google, Facebook, Amazon, and Netflix. These global giants are generating millions in profit using our data. Why should other people from other countries know our personal preferences and information? This is unacceptable," Zunaid Ahmed Palak, State Minister for Posts, Telecommunications and Information Technology said at the inauguration of Cypher.
What does Cypher offer?
Cypher, apart from meeting all the tier IV certification requirements, covers over 16,500 square feet of land area, featuring state-of-the-art equipment.
However, it was a big challenge to set up the centre within this small area, according to officials familiar with the project.
Backed by a fault-tolerant power control system, Cypher has an uninterrupted power supply. This setup involves redundant power connections sourced from two separate substations. A total of 155 server racks are distributed across the two floors where data is stored.
Then there are seven containment systems to ensure cooling efficiency.
"The major energy-consuming and most vulnerable part of a data centre is the cooling system. We have deployed cutting-edge technology to fully automate it," said Humayun Kabir, technical director of the project's delivery phase.
Jashore was chosen as the location because of the low land rent and flexible facilities provided by the park. On top of that, the city is less prone to seismic activity and floods, guaranteeing minimal risk to operations.
The case for data security
In the inauguration programme, Zunaid Ahmed Palak shared that the 'Personal Data Protection Act' is in the pipeline to ensure the data security of Bangladeshi citizens. As per this law, sharing personal information outside the country will not be allowed.
According to a McKinsey & Company article, 75% of all countries have implemented some level of data localisation rules.
The new law may come as a blessing for Axentec's business as it should increase demand for Cypher, being the only tier IV local data centre. Cypher features military-grade security measures such as biometric access control and round-the-clock surveillance.
The data centre ensures both physical and virtual security with a five-layer physical security system applied at the entrance. Real-time data can be monitored using the Data Centre Infrastructure Management System. Video surveillance is also available. Any maintenance error will trigger an alarm, and relevant concerns will be notified via email and SMS.
Cypher is also fully protected against fire, with the latest VESDA technology, which automatically detects fire and triggers an alarm. It can also withstand a fire for 30 minutes without any damage.
Rajeev Sethi, the managing director and CEO of Robi Axiata Limited, thinks that in addition to properly storing data, it is important to utilise it to create value.
"We undertake these initiatives because we don't see ourselves solely as a business; instead, we see ourselves as an entity investing in positive social impact regularly," he said.
While Cypher is the only commercial tier IV data centre in the country right now, competitors are already eyeing a share of the market.
According to a TBS report from 2023, Yotta Data Services — an arm of Mumbai-based conglomerate Hiranandani Group — announced plans to invest over Tk2,000 crore to set up a tier IV data centre at the Bangabandhu Hi-Tech City. And once the data protection law is passed, more centres will be needed to cater to the demand.
