India Prioritizes Sustainable Data Centre Expansion
Union Budget 2026 proposals aim to attract hyperscale data centres with subsidised land, tax holidays and tariff rebates as India’s capacity is projected to reach 14 GW by 2035 and investments may total $70 billion by FY35, industry reports said. Industry and consultants warn sustainability—power and water use—must be tied to incentives, with asks including audited PUE/WUE targets, green capex grants and ISTS waivers.
Key Points
- 1Projects capacity growth to 14 GW by 2035 and $70 billion investments expected by FY35
- 2Highlights rising AI demand (15–20% now, 40–50% by 2030) increasing power and water intensity
- 3Calls for incentives tied to audited PUE/WUE, green power procurement, ISTS waivers, and capex grants
Scoring Rationale
High industry relevance and concrete policy proposals, but limited novelty and reliance on industry sources rather than formal government commitments.
Sources
Public references used for this report.
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