The National Stock Exchange of India (NSE) on Wednesday announced the launch of phases 11 and 12 of its colocation facility expansion in Mumbai, introducing over 200 full rack equivalent (FRE) units to its data center capacity. The expansion brings the total colocation capacity at NSE to more than 1,200 racks, reinforcing its position as one of the largest colocation providers in the world, the stock exchange said.The colocation facility enables trading members to place their servers at the exchange's premises, ensuring ultra-low latency access to trading data and price feeds — a critical advantage in today’s technology-driven financial marketsThe expansion follows strong demand from market participants for enhanced colocation infrastructure, NSE said. Currently, over 200 members subscribe to the colocation racks, with an additional 100 leveraging the Colocation as a Service (CaaS) model. Building on this momentum, NSE plans to add 300 more full rack equivalent (FRE) racks by the end of the first quarter of FY25-26 at its Exchange Plaza site in Bandra Kurla Complex (BKC), Mumbai. This will increase total capacity to 1,500 racks in the next three months, the stock exchange said.Looking ahead, the exchange intends to add approximately 2,000 additional racks over the next two years, scaling its capacity to over 4,000 FRE racks in a phased manner. To accommodate this growth, NSE will convert its existing Exchange Plaza premises into a dedicated data center, relocating non-critical operations to nearby facilities.While the colocation facility operates on a best-effort basis, members are advised to put robust contingency systems in place to mitigate risks such as power failures, system issues, or connectivity disruptions. The colocation facility is part of NSE's broader integrated business model, which includes trading services, clearing and settlement, market data, and financial education.Also read | Dr Reddy's shares rally 4% as Nuvama upgrades rating to buy(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)