India's data centre policy in works, says Jitin Prasada

New Delhi - The Indian government is developing a comprehensive data centre policy, according to Minister of State for Electronics and Information Technology, Jitin Prasada. Prasada remarked that India is an ideal location for hyperscale data centres, as they consume less power compared to data centres in certain other nations. He emphasized that the government aims to prevent the escalation of power costs for consumers, a concern witnessed in other countries.

Prasada made these remarks during a Central Electricity Authority brainstorming session focused on artificial intelligence in the power sector.

In 2020, the Ministry of Electronics and Information Technology (MeitY) had introduced a draft data centre policy, which included granting infrastructure status to the sector and simplifying approval processes. However, a finalized national policy had yet to be officially implemented. Currently, 15 states have developed their own data centre policies, serving as the primary frameworks for the industry.

The central government has already extended its support to the sector through initiatives like a tax holiday for foreign cloud providers operating in India until 2047. Prasada highlighted the potential of artificial intelligence (AI) to enhance power generation flexibility, enabling systems to become more efficient and ensure power availability where it is needed.