Data centre policy: Centre plans dedicated framework amid rising power demand

India is developing a dedicated policy for data centres as the government aims to attract investment while preventing rising electricity demand from increasing costs for consumers. IT Minister Jitin Prasada announced the policy at an event organized by the Central Electricity Authority in New Delhi, though he did not reveal specifics or a timeline.

Prasada highlighted India's potential as a major hub for large-scale data storage and computing infrastructure. The proposed framework comes as the government seeks to expand data centre capacity to meet growing demand for cloud computing, AI, and digital services. Concerns about data centres drawing electricity away from other consumers have arisen in some countries.

India currently lacks a separate policy governing data centres, which are approved under existing environmental regulations and state incentives. The proposed policy aims to address the balance between the sector's rapid expansion and its potential impact on electricity consumption and local communities. The government has not yet disclosed further details about the framework or its expected timeline.