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Freedom251 › Blog › Bhubaneswar

Odisha approves $18.62 million disaster-recovery data center in Keonjhar

By Freedom251 Team · · 4 min read

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Odisha’s Cabinet approved a ₹176.83 crore (commonly reported as US$18.62 million) Disaster Recovery-cum-Data Centre on 13 October 2026. The facility will be built at the south campus of Dharanidhar University in Keonjhar district as a geographically separate recovery site for critical state-government digital services.

What Odisha approved

The approved project cost is ₹176,83,33,688, including taxes. The facility combines disaster-recovery infrastructure with a data center intended to support continuity of government services if the state’s main computing site is disrupted.

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Its defining feature is location. Odisha’s primary State Data Centre is in Bhubaneswar, while the new recovery facility is planned in Keonjhar. Separating the two sites reduces the risk that one incident—such as a major power failure, natural disaster, regional network outage or other disruptive event—will take both the production and recovery environments offline at the same time.

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The project is designed around three related goals:

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  • Business continuity: keeping essential digital government services available during a serious incident.
  • Disaster recovery: providing a separate location from which systems and data can be restored or operated.
  • Cyber resilience: strengthening the state’s ability to withstand and recover from attacks or technology failures affecting critical services.

Where the data center will be built

The approved site is the south campus of Dharanidhar University in Keonjhar district. Keonjhar’s distance from Bhubaneswar is central to the resilience design: it provides geographic separation from the primary State Data Centre rather than placing both sites in the same urban area or risk zone.

The approval identifies the location and project purpose, but does not publicly establish a commissioning date, final IT capacity, server count, uptime target or the specific government applications that will be hosted there. Those details will matter when Odisha publishes procurement, design and implementation information.

How the ₹176.83 crore budget is divided

Budget component Approved amount What it covers
Capital expenditure ₹154 crore Construction and other one-time infrastructure required to establish the facility
Operating expenditure ₹22.83 crore over five years Post-commissioning operation and maintenance
Total project approval ₹176.83 crore (₹176,83,33,688 including taxes) Capital and five-year operating components combined

The five-year operating allocation is important because a recovery site is useful only when its equipment, connectivity, power systems, security controls, backups and recovery processes remain maintained after construction. The approved figure is a project budget, not a recurring annual cost: the ₹22.83 crore covers the stated five-year operating period.

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How it differs from Odisha State Data Centre 2.0

The Keonjhar facility is separate from Odisha State Data Centre 2.0, which was approved in July 2026 for ₹266.48 crore in Bhubaneswar. The two investments serve different roles in the state’s data-center architecture.

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Comparison point Keonjhar DR-cum-Data Centre Odisha State Data Centre 2.0
Primary purpose Geographically separate disaster-recovery and continuity facility Modernization and expansion of the primary Bhubaneswar data-center program
Location South campus of Dharanidhar University, Keonjhar Bhubaneswar
Approved cost ₹176.83 crore, including taxes ₹266.48 crore
Resilience role Recovery location separated from the primary site Robust disaster-recovery capability within the broader primary-site program
Application scope Recovery support for critical state-government digital services Capacity relief, migration of existing applications and cybersecurity upgrades
Operating period stated in approval Five years of post-commissioning operation and maintenance Not stated in the project information available for this comparison

In practical terms, State Data Centre 2.0 addresses the capacity and modernization needs of the Bhubaneswar environment, while the Keonjhar project adds a physically separate place to recover or continue services when the primary location is unavailable. The projects are complementary rather than competing alternatives.

How the project fits Odisha’s data-center policy

Odisha’s Data Centre Policy 2022 positions the state as a destination for data-center investment and sets out incentives for eligible units. The policy provides a fixed-capital-investment subsidy of 20%, capped at ₹25 crore per unit. It also includes land and power-related concessions. For eligible facilities, electricity duty and inspection fees may be exempted for up to 10 years, subject to a contract demand of up to 5 MVA.

Those policy incentives are broader investment measures and should not be read as a deduction from the ₹176.83 crore Cabinet approval. The project-specific approval gives the facility’s budget; eligibility and the eventual use of policy incentives would depend on the applicable government rules and project structure.

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What the approval means for government services

A disaster-recovery data center is not simply extra server space. It normally supports replicated data, backup systems, alternate processing capacity, network failover and documented recovery procedures. The Keonjhar site’s value will therefore depend on how frequently state systems are replicated, how quickly services can be switched over, and how regularly Odisha tests restoration and failback procedures.

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The geographic design addresses one major weakness of a single-site arrangement: a local event in Bhubaneswar should not automatically affect the recovery location in Keonjhar. It does not, by itself, guarantee uninterrupted service. Resilience also requires reliable communications between sites, independent power and cooling, physical and cyber security, tested backups, trained operators and clear recovery priorities for government applications.

What happens next

Following Cabinet approval, implementation will require detailed design, procurement, construction or fit-out, installation of technology and support systems, connectivity arrangements, security controls, application recovery planning and operational testing. The approval does not yet specify the vendor, system integrator, final capacity, launch date or list of applications.

For residents and businesses that rely on Odisha’s online government services, the intended outcome is greater continuity when the primary Bhubaneswar site faces a severe outage or attack. For the state, the investment creates a second location that can support recovery while the larger Bhubaneswar modernization program tackles capacity, migration and primary-site cybersecurity.

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Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

Bhubaneswardata centersDisaster RecoveryGovernment TechnologyKeonjharOdisha

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