POLICY · DATA CENTRES

National Data Centre Policy 2025: Hyperscalers vs Local Players

Draft contours point to long-horizon incentives, green-power rails, and faster approvals. What operators, CSPs, and enterprises should prepare for.
By bataSutra Editorial · October 2, 2025
In this piece:
  • The short — what’s in the draft
  • Approval plumbing & timelines
  • Power & sustainability rails
  • Hyperscalers vs local players — who wins what
  • Checklist: site, power, financing
  • FAQ

The short

  • Status: Consultations on the National Data Centre Policy 2025 are active; language may evolve before notification.
  • Direction: Single-window approvals with SLAs, scale-linked incentives, and AI-ready infrastructure nudges.
  • Priority rails: Renewable open-access, grid upgrades, and harmonized standards for uptime, safety, and sustainability.

Note: Provisions below reflect current consultation direction; final rules may differ.

Approval plumbing & timelines

BottleneckDraft directionOperator action
Multipoint approvalsSingle-window with time-bound SLAsStandardize packs: layout, fire & safety, water, e-waste
Land zoning/permitsDedicated data-centre zoning & corridorsKeep 2–3 alternate parcels to hedge utility lead-times
Import of critical gearFacilitated clearance for servers, transformers, chillersDual vendors; granular customs documentation
Ops complianceUniform uptime & audit norms24×7 SOPs, DCIM, incident drills, third-party audits

Power & sustainability rails

  • Green power: Priority access to RE via open-access; banking/scheduling tweaks for steadier supply.
  • Cooling & water: Incentives for low-PUE designs, treated-water use in water-stressed zones, and heat-reuse pilots.
  • Grid upgrades: Substation augmentation, redundancy standards, and accelerated interconnection timelines.

Hyperscalers vs local players — who wins what

Hyperscalers / CSPs

  • Stronger fit for scale-linked incentives and expedited land/power tie-ups.
  • AI-ready racks (high-density) benefit from recognition of “advanced infra”.
  • Room to co-develop RE firming and on-site storage with utilities.

Local operators / colocation

  • Single-window + tax relief narrows cost of capital for Tier-2/3 expansion.
  • Differentiate via latency footprints, managed services, and compliance SLAs.
  • Consortiums can pool demand for open-access RE and grid upgrades.

Checklist: site, power, financing

TrackWhat to line up nowWhy it matters
Site controlClean title, zoning, flood & seismic mapsAvoid late-stage rework when approvals compress
PowerFirmed RE PPAs + backup grid route; battery/storage planPUE targets and AI-rack density require assured MWs
CapexBlended finance (ECB + domestic) with hedgesRate volatility lifts carrying cost for phased builds
Talent24×7 ops, compliance, DCIM, incident drillsLikely tighter audit and uptime standards

FAQ

  • Is the policy final? Not yet—consultations are ongoing; timelines depend on inter-ministerial alignment.
  • Are long tax holidays confirmed? Still under discussion; eligibility and caps may change at notification.
  • How soon could approvals speed up? If SLAs arrive alongside state alignment, lead times could compress within the first year of rollout.