Govt maps power demand for data centres as industry gears up for expansion

The government is mapping projected power demand for upcoming data centres and engaging with states and industry stakeholders. Initial projections indicate power demand for data centres may rise to 3.2 GW by FY28. Key factors for locating data cen...

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The government has initiated an exercise to map countrywide projected power demand from upcoming data centres as it gears up for their development, officials said. The power ministry has asked states to assess the expected consumption by data centres in consultation with the industry, they told ET.

The ministry has also held meetings with IT industry body Nasscom and the ministry of electronics and information technology, and will continue to engage with them, a senior government official told ET.

Another meeting with key stakeholders is likely to be scheduled in early March to deliberate on the projected requirements and locations so that infrastructure can be readied in time.


"The discussions are on and as soon as there is visibility on the capacity and locations, they have been asked to share," the official said.
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Till the data centres are developed, transmission lines and other infrastructure can be readied to cater to their demand.The ministry discussed with some states the possibility of creating regulatory frameworks for streamlining processes for their establishment, another person aware of the development said.

India's data centre demand for power, according to initial projections, is likely to go up to 3.2 GW by FY28, the person said. The current data centre capacity is 1 GW.
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However, they are the current estimates based on feedback given to the Central Electricity Authority and may change "significantly" once there is clarity from the industry, another government official said.

Lower latency, non-seismic zones, security concerns, land-related permissions and skilled manpower availability are critical factors in deciding the location of data centres in the country, the person quoted above said. Factors such as reliable clean power will play a major role in the expansion of this industry.

Future data centres may be located on the outskirts of major cities, ideally near renewable energy plants, which is why planning on supply gains significant prominence.

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