Data Centre Industry's Key Demands from MeitY

The data centre industry has expressed critical needs in recent discussions with the Ministry of Electronics and Information Technology (MeitY), focusing on two main areas:

1. Timely Government Approvals

• Industry players have highlighted the need for clear and enforced timelines for government approvals to facilitate the setting up of data centres.
• The process of obtaining multiple government permissions is seen as a significant obstacle for establishing new units.

2. Easing Right of Way (RoW) Issues

• Securing RoW for laying fibre-optic cables and power infrastructure remains a complex, lengthy process.
• There are inconsistent rules across India for RoW based on different ownerships, complicating the process further.
• The comprehensive RoW rules by the Department of Telecommunication (DoT) are often not adhered to or deliberately ignored by municipalities.
• An executive suggested that MeitY establish an institutional mechanism to address RoW issues and ensure all approvals are granted within a fixed timeline.

3. National Data Centre Policy

• Official consultations on the draft national data centre policy resumed in August, which was initially announced in 2020 but not implemented.
• MeitY has been requested to address RoW issues and the gaps in the country's fibre-optic cable connectivity with the DoT.

4. Additional Industry Requests

• The industry seeks specific operational guidelines and incentives for setting up AI data centres.

MeitY officials have acknowledged receiving these inputs and will discuss them in inter-ministerial forums.