India to roll out data centre policy amid concerns over power use

The Indian government is set to introduce a data centre policy amid growing concerns over the power consumption of the burgeoning sector, according to a statement by a minister. The policy aims to prevent consumers from bearing the brunt of higher electricity bills, as the sector's power usage has raised worldwide apprehensions.

Protests by residents in cities like Mumbai and Visakhapatnam against data centres planned by Amazon and Google have fueled the need for a dedicated policy in India, which currently operates under existing environmental and building rules, with some states offering their own incentives. Junior IT minister Jitin Prasada, who announced the move, didn't disclose the specifics of the policy or its unveiling timeline.

Data centres are a cornerstone of Prime Minister Narendra Modi's vision to attract global tech investments to India, presenting a potential US$200 billion opportunity. Prasada, speaking at a government event in New Delhi, highlighted that data centres in certain countries are drawing power away from consumers, resulting in higher electricity costs.

He emphasized that India is an ideal location for large-scale data centers, stressing that the government doesn't want to follow the same path. Environment groups have raised concerns over Google's ₹15 billion Visakhapatnam project, citing potential threats to local wildlife and the misuse of temple land. Google and Amazon have refuted the allegations, asserting that their facilities employ advanced technologies to optimize resource utilization.