Indian Government rolls out data center policy to curb electricity costs

Jitin Prasada: Jitin Prasada serves as India's Junior IT Minister within the Ministry of Electronics and Information Technology. On October 14, 2026, he announced the rollout of a national data centre policy aimed at preventing data centres from driving up electricity bills for consumers amid global concerns over the sector's power and water use. Indian Government: The Indian Government, led by Prime Minister Narendra Modi, formulates national policies on technology infrastructure, digital growth, and energy management. It recently announced the development of a dedicated data centre policy to address rising electricity consumption concerns while supporting sector expansion. Junior IT Minister Jitin Prasada highlighted the initiative at a Central Electricity Authority event, emphasizing protection for consumers from potential power cost increases. Policy Gap: India currently lacks a dedicated national policy for data centres, with approvals handled under existing environmental and building regulations while some states offer their own incentives. Public Backlash: Residents in cities including Mumbai and Visakhapatnam have protested against planned data centre projects by hyperscalers such as Amazon and Google due to impacts on local electricity, water, and other resources. Strategic Priority: Data centres are positioned as a central element in the Indian government's push to attract global technology investments and position the country as an AI and digital infrastructure hub.