From Financialexpress · Sheenu Sharma · · 1m 40s
Indian States Race for Data Centre Investments
Telangana, Maharashtra, UP and Gujarat lead India's data centre policy competition with power, land and faster clearances.
In brief
Telangana, Maharashtra, UP and Gujarat lead India's data centre policy competition with power, land and faster clearances. Indian states compete for data centre investments through power, land and approval incentives as capacity expands 17x by 2031-32. Originally reported by Financialexpress.
Data Centre Expansion
India prepares for sharp expansion in data centre capacity as states compete for investment.
S&P Global Ranking
S&P Global's Data Centre Policy Attractiveness India (DCPAI) index ranks Telangana, Maharashtra, Uttar Pradesh and Gujarat as top performers.
Top Cluster States

Telangana leads with competitive power tariffs and regulatory incentives for data centre developers.
Maharashtra's Package
Maharashtra offers balanced policy support across power, infrastructure, capital and regulatory ease for data centres.
Uttar Pradesh's Strategy
Uttar Pradesh provides extensive incentives for electricity, land, capital and operational support for data centre projects.
Gujarat's Edge
Gujarat focuses on low-cost power, streamlined clearances and industrial-friendly regulations for hyperscalers.
Second Tier States
Odisha, Haryana, Andhra Pradesh and Karnataka offer comprehensive packages for data centre projects.
Third Cluster States
Rajasthan, Tamil Nadu and West Bengal have moderate scores with strengths in capital or operational areas.
Policy Competition
States use fiscal incentives, streamlined clearances and clean power to attract data centres as critical infrastructure.
Capacity Expansion
India's data centre capacity could grow 17 times by 2031-32 from current levels of 1.5 GW.
Power Demand Surge
Data centres will require 18% CAGR in electricity demand from 2025 to 2035.
State Priorities
States focus on improving electricity costs, renewable power access and regulatory clarity for data centres.
What to remember
Indian states compete for data centre investments through power, land and approval incentives as capacity expands 17x by 2031-32.




