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Informist, Wednesday, Sept. 2, 2026

 

NEW DELHI – The government expects potential investments of around $200 billion in India's data centre industry, reflecting the opportunities created by a rapidly growing digital economy and artificial intelligence ecosystem, Commerce and Industry Minister Piyush Goyal said Wednesday. India is the world's best location for setting up data centres, Goyal said in his pitch to stakeholders from the industry.

 

The comments were made at a roundtable with top executives from data centres. "The Minister highlighted the potential of the data centre and semiconductor industries, India's growing presence in AI and its expanding manufacturing base for global quality products, noting that these sectors would power India's growth in the coming years and contribute towards achieving a $30 trillion economy by 2047," the commerce ministry said in a release. "Goyal said the meeting provided valuable insights and ideas on how India could become the data centre of the world," it added.

 

During the meeting, Goyal and the executives discussed various issues pertaining to the sector, including faster deployment of data centre infrastructure, particularly in the areas of power, land, and regulatory and fiscal issues. They also reviewed regulatory measures aimed at reducing project timelines and improving investment certainty, including streamlined single-window approvals and appropriate building regulations for data centres.

 

The discussions also highlighted the rapidly increasing demand arising from cloud and AI workloads. "Hyperscalers accounted for more than 80% of data centre absorption in the first half of 2026, underscoring India's emergence as an AI infrastructure destination," the release said.

 

Stakeholders also discussed measures to ensure adequate and reliable power availability, including cluster-based transmission and substation planning, Day-1 sanctioned load, dual power feeders, and facilitation of renewable energy procurement across states. "The need for DC-ready (data centre-ready) land banks and pre-identified power-ready parcels was also highlighted," the ministry said in its release.

 

Besides executives from the sector, state government officials also participated in the roundtable. Representatives from around 46 data centre companies were at the conference. "The dialogue will serve as a foundation for actionable, time-bound and high-impact reforms aimed at accelerating investment and innovation, strengthening India's digital infrastructure, and positioning the country as a trusted global data centre hub," the commerce ministry said.  End

 

US$1 = INR 94.97

 

Reported by Priyasmita Dutta

Edited by Rajeev Pai

 

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