India Data Centre Policy: Industry Demands Faster Approvals, Cheaper Power as Capacity Hits 1.57 GW

India's data centre capacity has surged from 375 MW in 2020 to 1.57 GW by August, a more than fourfold increase, as the country cements its position as a digital infrastructure hub. This rapid expansion is driven by soaring demand for cloud services, AI, and data localization, but industry leaders warn that bottlenecks in policy and infrastructure could slow momentum. They are calling for faster regulatory approvals and cheaper, reliable power to sustain growth. Key stakeholders, including major operators and investors, emphasize that the current framework needs urgent reform. The industry seeks streamlined clearances, tax incentives, and access to affordable renewable energy to remain globally competitive. India's data centre market is projected to add another 500 MW in the near term, but this depends on addressing high operational costs and bureaucratic delays. Why it matters: Data centres are the backbone of the digital economy, and India's push for digital sovereignty and AI leadership hinges on robust infrastructure. Without policy support, the country risks losing investments to rival hubs like Singapore or the Middle East. The next few months will be critical as the government finalizes the data centre policy. Industry players are optimistic but clear: act fast or fall behind.