India’s data centre race gets a readiness test: NITI Aayog wants power, water and payoffs proven first
Every state wants the next giant data centre. Few have asked whether their grid can power it, whether their water can cool it, or whether the jobs and taxes will justify the concessions handed out to land it. NITI Aayog’s new report, Data Centre Evaluation Framework to Help States Plan for Sustainable Growth, puts those questions on the table.
The timing matters. Generative AI, GPU-heavy computing and cloud migration are pushing demand for large, power-dense facilities. Reporting around the release cited NITI Aayog member Abhay Karandikar’s estimate that data centres use about 0.5% of India’s electricity today and could reach 1 to 2% within a decade. Those are reported estimates, not location-specific forecasts. But the share hides the real pressure, because a handful of large campuses can strain a single substation or transmission corridor.
Power comes first
The report’s sharpest message is that proposed capacity is not deliverable capacity....
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