NITI Aayog Framework Urges States to Evaluate Resources Before Approving Data Centres
· Business · The Hindu, LiveMint
A new evaluation framework developed by the NITI Aayog and Deloitte India calls for data centre approvals to be linked to verified availability of electricity, water, and infrastructure. Released on Wednesday, October 14, 2026, the guidelines advise States to prepare 20 to 30-year seasonal water assessments, protect existing resource users, and require developers to fund dedicated grid assets. The policy response comes as India's data centre capacity reaches 1.57 gigawatts across 271 facilities as of 2026, with consumption projected to surge from 13 terawatt-hours in 2024 to 57 terawatt-hours by 2030. States including Maharashtra, Tamil Nadu, Gujarat, and Uttar Pradesh are actively competing for investments through ambitious capacity targets. However, this rapid expansion has sparked local pushback, such as resident protests in Thane, Maharashtra, over resource consumption and facility proximity to residential areas.
Why it matters
The framework addresses growing friction between India's digital infrastructure ambitions and municipal resource constraints, establishing structured guidelines for power and water allocation. It impacts how state governments evaluate tech investments against local environmental and utility demands.
Read the original report — The Hindu
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