MeitY Secretary S Krishnan has urged Microsoft to locate future AI data centres closer to power-generation hubs to reduce electricity-wheeling costs and improve infrastructure economics.
MeitY Secretary S Krishnan has urged Microsoft to locate future data-centre capacity closer to power-generation centres, rather than concentrating new capacity primarily around cable landing stations and connectivity hubs. The move could reduce long-distance electricity-wheeling costs and make AI and data-centre infrastructure more economical.
“My request to Microsoft would be that eventually you’ll have to go and install capacity closer to where the power itself is generated so that we don’t have to wheel it all across. There are costs involved there,” Krishnan said.
“It’ll be from a cost perspective for India, for the ecosystem and for you also. It’ll be much more economical if you go closer to where the power itself is generated,” he added.
Krishnan said India’s electricity grid and renewable-energy capacity should be effectively utilised as AI and data-centre infrastructure expands. He also pointed to taxation policies, ease-of-doing-business measures, and changes under the new telecom law that have made data-centre deployment and grid connectivity easier.
“It’s much easier today in India to actually build a data center and connect it to the grid and bring it on stream than it is in many countries even in Europe,” he said.
According to Krishnan, Microsoft’s infrastructure buildout in India is running ahead of schedule, with demand for such infrastructure being both Indian and global. He also stressed efficient use of power and water and the importance of sustainability.
“Eventually, when you bring in more research and when you bring in more development, there will be far better quality jobs which will get created in India’s economy,” he said.
The government will continue facilitating Microsoft’s expansion to help it build faster for requirements in India and globally.
