Piyush Goyal, Union Minister for Commerce and Industry, has called for faster approvals, reliable power supply and easier access to ready-to-use land to support the rapid expansion of India’s data centre industry.
Speaking in Japan, Goyal said India has a major opportunity to strengthen its position as a global data centre hub as demand for cloud computing and artificial intelligence (AI) infrastructure continues to rise.
His remarks came after a roundtable with data centre industry stakeholders, where discussions focused on easing regulatory hurdles, improving power infrastructure and speeding up project deployment. The meeting brought together government representatives, global hyperscalers, data centre developers and operators, investors and infrastructure providers.
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Data centres seek reliable and ready-to-use power
Power availability emerged as one of the key concerns for the industry. Stakeholders called for better planning of transmission networks and substations around data centre clusters. They also proposed sanctioned power loads from the first day of operations, dual power feeders and easier access to renewable energy across state borders.
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The industry also sought DC-ready land banks and pre-identified parcels with power infrastructure in place. Such measures could help developers reduce the time required to begin construction and bring new facilities online.
Single-window approvals among key demands
Regulatory delays were another major focus of the meeting. Industry representatives pushed for streamlined single-window approvals and building regulations that take into account the specific requirements of data centre projects.
The discussions centred on improving the ease of doing business and reducing project timelines across four major areas: power, land, regulations and fiscal measures. For data centre developers, quicker clearances can provide greater certainty around project costs and timelines while helping new capacity come online faster.
AI and cloud workloads drive demand
The push for faster infrastructure development comes as demand for data centres continues to grow. The government said rising cloud and AI workloads are driving a rapid increase in demand for data centre capacity in India.
Hyperscalers accounted for more than 80 per cent of data centre absorption in the first half of 2026, highlighting the growing role of India in the global AI infrastructure landscape. The government expects investments in India’s data centre sector to reach around US$200 billion, reflecting the expanding needs of the country’s digital economy and AI ecosystem.
Eight states join data centre policy discussion
Representatives from Andhra Pradesh, Gujarat, Haryana, Karnataka, Maharashtra, Tamil Nadu, Telangana and Uttar Pradesh took part in the roundtable. Around 46 data centre companies were also represented at the meeting, bringing together stakeholders involved in development, operations, investment and infrastructure.
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The government said the discussions are expected to form the basis for actionable and time-bound reforms. The broader aim is to accelerate investment, support innovation and strengthen India’s digital infrastructure as the country seeks to establish itself as a major global data centre hub.
Indrani Priyadarshini is a journalist and editorial professional specialising in technology, artificial intelligence, smart cities, green energy, and digital transformation. With over four years of experience in tech journalism and digital media, she is known for turning complex industry developments into clear, engaging, and insightful stories. Her expertise spans reporting, editorial strategy, digital publishing workflows, and in-depth coverage of emerging technologies shaping the future.
