# 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.
- Title: Indian States Race for Data Centre Investments | Shortify
- Summary: Telangana, Maharashtra, UP and Gujarat lead India's data centre policy competition with power, land and faster clearances. Indian states compete for data…
- Keywords: telangana, maharashtra, uttar pradesh, gujarat, data centre, power incentives, land support, clearances, s&p global, dc pai index, data centre capacity, india
- Source: Financialexpress — https://financialexpress.com/business/industry/how-indian-states-battling-for-data-centre-investments-power-land-faster-clearances/4353235
- Author: Sheenu Sharma
- Published: 2026-10-04T08:39:47+00:00
- Read time: 1 min
- Topics: telangana, maharashtra, uttar pradesh, gujarat, data centre, power incentives, land support, clearances, s&p global, dc pai index, data centre capacity, india
## 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.
## Key takeaway

Indian states compete for data centre investments through power, land and approval incentives as capacity expands 17x by 2031-32.