NITI Aayog launches data centre evaluation framework for Indian states

NITI Aayog’s Frontier Tech Hub has released a Data Centre Evaluation Framework designed to guide Indian states in planning sustainable data centre growth. The framework aims to transition state governments from merely attracting investments to building investment-ready infrastructure while protecting critical resources like electricity and water.

Developed with input from the Ministry of Electronics and Information Technology, the Ministry of Power, and DPIIT, the framework provides criteria for assessing infrastructure readiness, identifying suitable zones, and linking state incentives to measurable outcomes such as innovation and skill development. This comes as India’s data centre capacity has expanded from 375 MW in 2020 to approximately 1.5 GW, driven by demand for artificial intelligence, cloud computing, and high-performance computing.

To support this digital transformation, the government has implemented measures such as a tax holiday until 2047 for eligible foreign cloud service providers using India-based infrastructure. Experts emphasize the need for domestic R&D and industry-academia collaboration to strengthen India’s position in the global technology value chain.