India's data center boom

India is one of the hottest markets for data centers, with several U.S. Big Tech companies investing billions to set up digital infrastructure in the country.

Public backlash over resources

Amazon and Google's data center projects are facing growing public anger over resource sharing and environmental concerns, prompting the government to step in.

Amazon's Mumbai project

Amazon's data center near Mumbai is facing resistance from residents worried the facility would receive priority access to water and electricity during shortages.

Google's Visakhapatnam project

Environmental activists have been demanding cancellation of permissions given to Google's fifteen billion dollar AI data center project in Visakhapatnam.

Amazon's response

Amazon told CNBC it is committed to being a good and responsible neighbor, denying it uses water for cooling and saying data centers do not draw from local power networks.

“good and responsible neighbor”

Government announces policy

On October fourteen, junior minister Jitin Prasada announced India will roll out a policy for data centers, calling the country a fertile ground for hyperscalers.

“fertile ground for hyperscalers”

Avoiding power competition

The minister reportedly said India wants to avoid a situation where consumers have to pay more for power because they have to compete with data centers for supply.

Policy shift toward balance

The proposed policy indicates a shift from primarily encouraging data center investment toward balancing it with infrastructure readiness and sustainability aspects.

Niti Aayog framework

Niti Aayog, an Indian government think tank, shared a framework for local governments to evaluate data center projects for sustainability based on grid readiness and water availability.

Need for national policy

India does not have a dedicated national policy for data centers. Projects are currently approved under existing environmental and building rules, with every state having its own variations.

“India does not have a dedicated national policy for data centers”

State governments hold power

While the Indian government has given hyperscalers twenty year tax breaks, regional governments are the final decision makers for providing land, water and power resources to projects.