Powering India’s digital future, MeitY’s revived data centre policy promises faster clearances, greener infrastructure, and incentives to boost capacity and manufacturing across emerging tech hubs.
The Ministry of Electronics and Information Technology (MeitY) has resumed consultations on its long-pending National Data Centre Policy. The move aims to expand the country’s data storage and processing capacity while easing regulatory hurdles for operators.
The draft policy, first introduced in 2020, is being updated to reflect the changing needs of the industry, including the rapid growth of AI-driven workloads. MeitY is engaging with stakeholders to finalise a framework that will accelerate investment and improve geographical spread.
A key proposal is the creation of four Data Centre Economic Zones (DCEZs). These would be developed with ready-to-use infrastructure, reliable power supply, and high-speed connectivity. The policy also proposes a single-window clearance system to streamline approvals, reducing delays for new projects.
According to a report by The Economic Times, industry players have long demanded such reforms, citing India’s heavy reliance on a few metro hubs like Chennai, Hyderabad, and Delhi NCR. The policy seeks to promote growth in tier-2 and tier-3 cities, enabling balanced distribution and improved disaster resilience.
Incentives under discussion include tax breaks, infrastructure status for large facilities, and support for renewable-energy-based operations to meet sustainability targets. The framework is also expected to promote the greater use of domestically manufactured hardware, including servers, storage devices, networking equipment, and cooling systems.
The renewed push comes at a time when global cloud providers, AI companies, and hyperscale operators are scaling up in India.
