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Modi government to introduce dedicated policy for data centers 
The move comes as part of efforts to address concerns over electricity consumption

Modi government to introduce dedicated policy for data centers 

Oct 14, 2026
03:49 pm

What's the story

India is set to introduce a dedicated data center policy, Minister of State for IT Jitin Prasada announced today. The move comes as part of efforts to address concerns over electricity consumption and protect consumers from rising power bills. The announcement follows protests in cities like Mumbai and Visakhapatnam against proposed Amazon and Google projects over water, electricity, and environmental issues.

Regulatory framework

Current regulatory framework for data centers

Currently, there is no dedicated policy for data centers in India.

They are regulated under existing environmental and building codes, with some states providing their own incentives.

The lack of a specific policy has led to concerns over the sector's power consumption and its impact on the consumers' electricity bills.

Strategic importance

Data centers key to PM Modi's investment strategy

Data centers play a major role in Prime Minister Narendra Modi's investment strategy.

He has invited global data to be stored in India, calling it a "India is a very fertile ground for hyperscale data centers."

Prasada made this statement at an event organized by the Central Electricity Authority in New Delhi.

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Consumer impact

Addressing the electricity strain concerns

Prasada highlighted the issue of data centers in some countries consuming power from consumers, resulting in higher electricity bills.

He emphasized that India doesn't want to go down that path.

The minister also addressed concerns raised by residents near Amazon's site outside Mumbai over power, water strain, and noise.

Environmentalists have also raised concerns about Google's $15 billion project in Visakhapatnam threatening wildlife and misusing temple land.

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