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Singapore Explores Data Embassy in Gujarat’s GIFT City for Data Security

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Business Honor - Singapore Explores Data Embassy in GIFT City

Business Honor
01 August, 2025

Singapore plans Data Embassy in GIFT City to enhance sovereign data protection and security.

Singapore is exploring the possibility of setting up a Data Embassy in GIFT City, Gujarat. Protecting sovereign data from external cyber and physical dangers is the goal of this institution. Dipesh Shah, Executive Director of the International Financial Centres Authority (IFSCA), confirmed Singapore’s public interest in this initiative.

Data Embassies are advanced data centers designed to offer complex cybersecurity and physical security to maintain sensitive data from unauthorized access and geopolitical risks. Governments and companies can improve data security, guarantee compliance and temporary international cooperation on handling information by establishing these embassies.

The idea was first introduced in the Union Budget 2023, with India planning to establish Data Embassies in the GIFT International Financial Services Centre (IFSC). The process will be governed by bilateral agreements between India and the interested countries. However, some legal adjustments are still pending.

Data Embassies will operate under the jurisdiction and protection of the host country, confirming that sensitive data is safe and yielding with international regulations. Like diplomatic embassies, they will be exempt from local laws.

Experts believe that India needs to clarify policies on data embassies, including legal aspects of data storage and emergency access protocols. India’s Digital Personal Data Protection Act 2023 does not specifically address Data Embassies, underlining the need for clear legal frameworks. Setting up Data Embassies could meaningfully boost India’s data storage industry and promote investment in AI, big data and other technologies positioning India as a “trusted data repository” globally.