India

India to Draft Dedicated Data‑Centre Policy Amid Power‑Demand Concerns

By Livemint

India is working on a dedicated policy for data centres to attract investment while preventing rising electricity costs for consumers. Junior IT Minister Jitin Prasada announced the proposal at a Central Electricity Authority event in New Delhi on Wednesday. He did not detail the policy’s contents or launch date. "India is a very fertile ground for hyperscale data centres," Prasada said, noting the country’s potential to become a major hub for large‑scale data storage and computing. He also warned against the situation in some countries where data centres divert power from other users, raising bills, and said India does not want a similar problem.

Currently, India has no separate data‑centre policy. Projects receive approval under existing environmental and building regulations, and several states offer incentives. The proposed framework aims to support the expansion of India’s data‑centre capacity amid growing demand for cloud computing, artificial intelligence and digital services, while addressing concerns about the sector’s increasing electricity and water use.

The announcement comes amid protests and environmental concerns over major data‑centre projects by Amazon and Google. Residents near Amazon’s proposed site outside Mumbai have raised issues about electricity, water supplies and noise pollution. In Visakhapatnam, environmentalists claim Google’s $15 billion project could threaten local wildlife and use temple land. Both companies have denied the allegations and said their facilities employ advanced technologies to minimise resource consumption.

Data centres are a key part of the government’s strategy to attract investment and strengthen India’s digital infrastructure. Prime Minister Narendra Modi has invited "the whole world’s data to reside in India," positioning the country as a global destination for data storage and computing. The government views the sector as a potential $200 billion opportunity, with global firms such as Google, Microsoft and Amazon investing in India’s cloud and AI infrastructure.

The proposed policy is expected to balance rapid sector growth with concerns over electricity consumption and consumer impact. No further details or timeline have been released yet. (With inputs from news agency Reuters)