DIGITAL INFRA · POLICY

National Data Centre Policy 2025: Hyperscalers vs Local Players

Power corridors, renewable tie-ins, and capex/MW math. Where global clouds dominate—and where local operators win.
By bataSutra Editorial · October 16, 2025
In this piece:
  • The short — what’s changing now
  • Location & power: corridor map
  • Capex per MW & operating math
  • Rack density & cooling choices
  • Renewables, storage & SLAs
  • Go-to-market lanes: hyperscaler vs local
  • State & developer checklists
  • FAQ

The short

  • Speed to power: Fastest sites pair ready-to-serve land with 24×7 firm power and clear open-access pathways.
  • Capex/MW: Larger campuses compress build costs; retrofit city-core sites pay premiums but win on latency.
  • Density: AI racks (20–60 kW) push liquid cooling pilots; retail colocation stays ~6–10 kW/rack.
  • Green SLAs: Long-tenor RE + storage contracts become commercial, not just ESG, levers.
  • Local edge: Quicker permitting, city fiber, and tailored SLAs help local players win BFSI/media workloads.

Location & power — practical corridor map

Tier-1 metros

  • Mumbai–Navi Mumbai–Thane: Subsea access, talent, but land/power premiums; ideal for interconnect-rich campuses.
  • Delhi–NCR: Peering density and government workloads; watch air-cooling limits and water constraints.
  • Chennai: Cable landings + RE procurement options; cyclone hardening required.

Emerging corridors

  • Hyderabad: Land bank + power availability; enterprise DC consolidations.
  • Pune: Lower seismic risk; strong fiber backhaul; good for secondary campuses.
  • Gujarat coast: Port proximity + industrial RE; watch salt-air corrosion mitigations.

Capex per MW & operating math (illustrative)

Build typeCapex/MW (₹ cr)PUE (steady)Time-to-powerUse case
Greenfield campus (100+ MW)₹50–651.35–1.4512–18 monthsHyperscale, AI clusters
City-core retrofit (5–20 MW)₹70–901.45–1.609–12 monthsLow-latency retail colo
Edge/metro micro-DC (≤2 MW)₹80–1001.40–1.556–9 monthsCDNs, telco, fintech
Rule of thumb: Every 0.1 improvement in PUE at ₹8–10/kWh can shift power opex by ~₹0.7–1.0 cr/MW/year.

Rack density & cooling choices

  • Retail colo: 6–10 kW/rack on efficient air-cool; hot-aisle containment standard.
  • AI/accelerated: 20–60 kW/rack requires liquid assistance (rear-door HEX, direct-to-chip pilots).
  • Design pivot: Blend air today with liquid-ready loops to avoid stranded capex.

Renewables, storage & SLAs

Contracts

  • 10–15 yr open-access RE with annual shape guarantees.
  • On-site BESS for ride-through + peak-shaving; diesel only for last-resort backup.
  • SLA clauses tie renewable shape to penalties/credits.

What to watch

  • Grid congestion windows; queue positions for sub-stations.
  • Curtailed RE hours and seasonal derates; model worst-case shape.
  • Water usage permits for evaporative systems; drift to adiabatic/dry coolers.

Go-to-market lanes — who wins where

LaneHyperscaler edgeLocal operator edgeBuyer signals
AI training clustersCapex depth, global tooling, supply chain20–60 kW/rack, liquid ready, campus scale
Enterprise retail coloMarketplace pull-throughPermitting speed, city latency, custom SLAsBFSI, media, healthcare workloads
Sovereign/regulatoryCompliance frameworksLocal control, data-residency comfortExplicit residency, audit trails
Edge/metro nodesCDN aggregationFiber access, micro-sites, last-mile opsOTT, telco, payments

State & developer checklists

States

  • Single-window clearances with guaranteed timelines.
  • 24×7 power at industrial tariffs; open-access clarity.
  • Fiber ROW fast-track; multi-path route diversity.

Developers

  • Liquid-ready designs; modular blocks for fast ramps.
  • RE + BESS stacking; explicit shape SLAs.
  • City peering + carrier-hotel partnerships to cut churn.

FAQ

  • Is liquid cooling mandatory? Only for sustained >20 kW/rack; most retail workloads stay on advanced air with liquid-ready options.
  • Does green power raise costs? Long-tenor contracts can lower opex volatility; storage smooths shape penalties.