The National Stock Exchange (NSE) on Wednesday announced the expansion plans for its colocation facility under which it is targeting addition of around 2,000 new racks.
The new additions will be done in its current premises.
Colocation facility helps stock brokers to place their servers in the data centre of the exchange and allows faster access of trade data and price feeds. The ultra-low latency of the facility enables faster trading. The exchanges charge an annual fee for this facility from the brokers.
In the recent phases, it has released over 200 full rack equivalent (FRE) capacity while around 300 FRE capacity will be added by the end of the first quarter of FY26. This addition will take the capacity to 1500 racks. In the next two years, it plans to add nearly 2000 FRE capacity on need basis in a phased manner.
For this, the exchange will be converting its existing premises into a data centre and relocate the non-critical employees to other office facilities.
At present, over 200 stock brokers and members have subscribed to the racks in the exchange’s colocation facility while over 100 members have subscribed to the Colocation as a Service (CaaS) model.
NSE stated that the expansion plan follows the demand raised by market participants.