Telangana Leads India’s Data Centre Policy Rankings, Maharashtra And UP Among Top States In S&P Global Report

India's data centre policy rankings have Telangana leading the way, according to S&P Global's India Forward: Reimagining Growth report. The state offers an attractive package for data centres, bolstered by electricity and regulatory incentives. Maharashtra and Uttar Pradesh also rank among the top, providing balanced support across power, infrastructure, capital and regulatory requirements. Gujarat is unique for its electricity incentives and business operation simplification measures.

The four leading states scored around 50 out of 100 on S&P Global Energy's Data Center Policy Attractiveness India index. This assessment covered 19 policies introduced since 2016 across 11 states, examining frameworks for IT, IT-enabled services, data centres and Global Capability Centres.

Andhra Pradesh emerged as the leader in land and capital benefits, while Odisha, Haryana, Andhra Pradesh and Karnataka formed a second group, scoring between 42 and 45. Karnataka made notable strides in business conditions with protection under the Essential Services Maintenance Act. Odisha and Haryana offered incentives covering different stages of a project's life.

Rajasthan, Tamil Nadu and West Bengal scored between 30 and 40, with Tamil Nadu excelling in capital spending support, including renewable energy infrastructure, but lagging in electricity incentives alongside West Bengal.

India's existing data centre capacity stands at approximately 1.5 gigawatts. The report projects that another 5 GW will be committed for the next decade, with 6-7 GW anticipated to be announced or in early planning. Consequently, total capacity could reach a remarkable 26.3 GW by FY2031-32. The growth in electricity demand from Indian data centres is estimated to surge by 18% annually between 2025 and 2035, encompassing cooling and operational requirements.