NSE announces expansion of co-location capacity at NSEIL premises

NSE announces expansion of co-location capacity at NSEIL Premises

The National Stock Exchange (NSE) has announced a significant expansion of its co-location capacity at the NSEIL premises, strengthening its position as one of the world’s largest co-location service providers.

In a statement released on Wednesday, the exchange unveiled over 200 Full Rack Equivalent (FRE) capacity as part of Colocation Phases 11 and 12. This addition takes the Exchange’s combined capacity to over 1,200 FREs.

“With the introduction of the new phases, NSE has become one of the largest co-location facility providers globally, catering to the diverse needs of market participants,” the Exchange said.

Currently, over 200 members have subscribed to racks in the Exchange's Co-Location Facility, while more than 100 members are utilising the service through the Colocation as a Service (CaaS) model, the statement added.

Acknowledging the rapid development in Indian financial markets and the rising demand for co-location services, the Exchange plans to further expand its capacity. It is set to introduce an additional 300 FREs by the end of the first quarter of FY 2025-26 at the Exchange Plaza in Bandra-Kurla Complex (BKC), Mumbai. This will take the total capacity at the BKC site to 1,500 racks within the next three months.

Looking ahead, NSE has ambitious plans to add approximately 2,000 more FREs over the next two years in a phased manner, subject to market demand.

The co-location facilities are critical for enabling high-frequency and low-latency trading, providing market participants with the infrastructure to process trades at speeds critical for today's fast-paced trading environment.