The short
- Consultations: MeitY held industry consultations on the National Data Centre Policy 2025 in Aug (Vigyan Bhawan), restarting the push for a unified policy.
- Capacity: India’s third-party DC capacity is projected to double to ~2.5 GW by FY28 (from ~1.25 GW in Mar 2025), requiring ~₹90,000 cr fresh capex.
- Demand drivers: Cloud, AI/LLMs and 5G backhaul are accelerating rack demand; Nomura sees a multi-GW runway into 2030.
- Green energy: Open-access renewables + BESS are becoming standard as grid intensity and SLAs tighten.
What the policy is expected to do
| Theme | Draft direction (indicative) | Why it matters |
|---|---|---|
| Single-window clearances | Centre-state harmonisation for land, power, environmental approvals | Cuts lead times; benefits both hyperscalers & local colo |
| Power access | Preferential access to OA renewables; enabling round-the-clock (RTC) contracts | Improves uptime SLAs; reduces carbon intensity & cost |
| Domestic manufacturing | Encourage server/rack/cooling supply chains | Cost/lead-time advantages; strategic security |
| Localization & security | Clarity on critical sector workloads and data residency | Defines what must be in-country; drives hyperscaler POPs |
Status: Draft under refinement; final text pending. States will continue to run incentive policies alongside the national framework.
Who benefits — our read
- Hyperscalers: Win on speed (permits) and power (RTC green). Expect more owned-campus builds in Mumbai/Hyderabad/NCR + tier-2 edge sites.
- Local colo operators: Gain from uniform permits and OA RE clarity; edge in multi-tenant flexibility and enterprise deals.
- Power developers/BESS: Co-located/contracted storage demand rises as AI loads push 24×7 profiles.
Numbers to track (2025–28)
| Metric | Now (FY25) | FY28e | Notes |
|---|---|---|---|
| 3rd-party DC capacity | ~1.25 GW | ~2.5 GW | ICRA projection; ~₹90,000 cr capex pipeline |
| DC share of India power | <1% | ~3% by 2030 | Nomura est.; AI lifts intensity |
| Renewables sourcing | Open-access RE growing | RTC + BESS mainstream | OA RE 2022 rules + falling BESS costs |
Execution watch-outs
- Permitting: State capacity to run single-window cells will vary—expect staggered rollout.
- Power: OA congestion and transmission bottlenecks can delay RTC contracts; BESS adds capex.
- Water & cooling: Local constraints push toward adiabatic + liquid cooling; costs shift by climate zone.