India to roll out data centre policy as concerns grow over power use

India is set to unveil a policy for data centres, according to Junior IT Minister Jitin Prasada, who announced the move on Wednesday. The government aims to prevent consumers from shouldering the burden of rising electricity costs, as the sector's power consumption has raised global concerns. This policy comes after protests from residents in cities like Mumbai and Visakhapatnam against planned data centres by major tech companies, Amazon and Google, citing issues such as water and electricity usage.

Presently, India lacks a specific policy for the data centre sector, which operates under existing environmental and building regulations. Some states have also implemented their own incentives for the industry. Prasada did not disclose the exact scope of the upcoming policy or its timeline for implementation.

Data centres play a pivotal role in Prime Minister Narendra Modi's vision, as he has welcomed global tech firms to establish their presence within India. The government views the sector as a potential US$200 billion market. Prasada, speaking at a government-hosted event in New Delhi, emphasized the sector's potential, stating, "India is a very fertile ground for hyperscale data centres."

However, the government's approach to regulating data centres has faced criticism. In some countries, data centres have allegedly drained power resources from local consumers, leading to increased electricity bills. Environmentalists have raised concerns over Google's US$15 billion Visakhapatnam project, alleging that it could harm local wildlife and infringe upon sensitive religious sites.

Despite these concerns, both Google and Amazon have refuted the allegations, asserting that their facilities employ advanced technologies to optimize resource utilization and minimize environmental impact.