National Data Centre Policy
The Ministry of Electronics and Information Technology (MeitY) has renewed consultations on the draft National Data Centre Policy, initially announced in 2020 but not yet implemented. The policy aims to attract investments by simplifying the setup of data centers through single-window permissions, streamlined approvals, promotion of domestic manufacturing, and provision of incentives.
Objectives and Features
- Single-window clearances: To expedite the approval process for data center establishments.
- Dedicated Data Centre Economic Zones (DCEZs): Establish four zones to balance the geographical distribution of data centers.
- Incentives: Encourage investment through financial and regulatory incentives.
- Infrastructure status: Data centers with a capacity of 5 MW or higher have been granted infrastructure status.
Current Developments
- Recent stakeholder consultations in New Delhi involved industry representatives providing recommendations to update the policy in response to sector changes over the past five years.
- The government is particularly interested in establishing DCEZs to leverage smaller edge data centers in less urbanized areas.
State Involvement
- At least 10 states have introduced data center policies.
- Major states like Maharashtra, Tamil Nadu, and Uttar Pradesh offer single-window clearances.
Industry Statistics
- India has 153 data centers as of July, with a capacity of 1,263 MW.
- Capacity is projected to exceed 4,500 MW by 2030 with a $20-25 billion investment.
- Main capacity concentration in Mumbai (41%), Chennai (23%), and Delhi NCR (14%).
These developments reflect the government's strategy to make India an attractive destination for data centers, responding to industry needs and evolving technological trends.
