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India moves to rein in data-center expansion as power and water concerns grow

India moves to rein in data-center expansion as power and water concerns grow

India is preparing a dedicated data-center policy as rapid investment in artificial-intelligence and cloud infrastructure raises concerns about electricity, water, land and local services. Minister of State for Electronics and Information Technology Jitin Prasada announced the initiative on Oct. 14, saying India wants to attract hyperscale facilities without shifting higher power costs onto consumers.

The government-backed framework released on Oct. 14 gives states a common process for evaluating proposed facilities. States are urged to check grid capacity before approval, assess long-term water availability and competing household and agricultural needs, and consider treated wastewater, rainwater harvesting and on-site storage.

The framework also recommends linking incentives to measurable outcomes such as employment, local procurement, renewable-energy use and resource efficiency. It calls for time-bound approvals, clearer accountability and monitoring of commitments.

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