India wants more data centres. But does it have enough power to support them?
By Nilaya Varma, Co-Founder and Group CEO of Primus Partners & Indranuj Pathak, Manager – Public Policy at Primus Partners
India’s data centre story has moved from promise to construction site. Installed capacity has nearly tripled in five years, from about 520 MW in 2020 to close to 1.5 GW today, and is projected to reach 4.5 to 6.5 GW by 2030, with some industry estimates running closer to 9 or 10 GW. Committed investments between 2019 and 2025 have crossed USD 95 billion. The Union Budget 2026 has added a long-term tax holiday for data centre and cloud investments extending to 2047, building on the infrastructure status granted earlier. The intent is unambiguous: India wants to be a global data centre and AI hub.
The harder question sits one layer below the announcements. Every megawatt of data centre capacity is, in effect, a claim on the power system....
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