Data Centres in India Infrastructure for the Digital Age

India's digital economy expansion has driven significant growth in data centre infrastructure, which supports e-governance, banking, and emerging technologies like Artificial Intelligence. Installed data-centre power capacity increased from approximately 375 MW in 2020 to 1.57 GW as of August 2026, and is projected to reach nearly 8 GW by 2030, with electricity demand potentially hitting 17 GW by 2031-32 according to the Central Electricity Authority. The Government has supported this ecosystem through measures such as including data centres in the Harmonized List of Infrastructure in the Union Budget 2022-23 and introducing a tax holiday for eligible foreign cloud service providers until 2047 in the Union Budget 2026-27. Additional linked ecosystem initiatives include the Semicon India Programme (Semicon 2.0), IndiaAI Mission, Electronics Components Manufacturing Scheme (ECMS), and PLI Scheme 2.0 for IT Hardware.