Government Highlights Rapid Expansion of Data Centre Capacity to Support - 6th August 2026 - Ministry of Electronics and Information Technology - Gazette Notification PDF
Issued by Ministry of Electronics and Information Technology
Read or download the official PDF of this gazette notification issued by the Ministry of Electronics and Information Technology on 6th August 2026. Classified under Press Release.
Executive Summary & Key Takeaways
Executive Summary This report outlines the rapid expansion of India's data center capacity, which has grown from 375 MW in 2020 to 1,575 MW as of August 2026. Driven by the demand for AI and high-performance computing, the sector relies on private investment without government subsidies. The information was formally submitted to the Lok Sabha by the Union Minister of State for Electronics and Information Technology on August 5, 2026.
Key Points / Main Content
Industry Growth and Capacity
- Total installed capacity increased from 375 MW in 2020 to approximately 1,575 MW currently.
- Rapid growth in AI and high-performance computing is the primary driver for increased capacity demand.
- The sector is an integral component of the Digital India Infrastructure ecosystem.
Ownership and Investment Model
- Data centers are majorly developed, owned, and operated by private domestic and global companies.
- The Government of India does not provide any subsidies for establishing data centers.
- Location selection is based on commercial demand, power availability, operational expenses, and skilled manpower.
Geographical Expansion
- Established locations include Mumbai, Navi Mumbai, Chennai, Hyderabad, Bengaluru, Delhi NCR, and Gujarat.
- New investment destinations are emerging in Andhra Pradesh, Madhya Pradesh, Chhattisgarh, and West Bengal.
Environmental and Resource Management
- Groundwater extraction for data centers is governed by Ministry of Jal Shakti guidelines.
- The industry is shifting toward advanced cooling technologies, including direct-to-chip liquid cooling, adiabatic cooling, and immersion cooling.
- Implementation of high-density racks and closed-loop liquid cooling systems is reducing power and water consumption while improving Water Use Efficiency (WUE).
Impact Analysis
Private Data Centre Developers Impact They are the primary drivers of infrastructure growth but must operate without government subsidies, bearing all operational and establishment risks. Action Required Conduct thorough evaluations of demand projections, long-term business viability, and resource availability before choosing investment locations.
State Governments (Andhra Pradesh, Madhya Pradesh, Chhattisgarh, and West Bengal) Impact These states are becoming new focal points for industry expansion and private investment. Action Required Ensure the availability of power and skilled manpower to support incoming commercial demand from global and domestic players.
Ministry of Jal Shakti Impact The Ministry serves as the regulatory authority for the water requirements of the expanding industrial sector. Action Required Monitor and control groundwater extraction through the enforcement of issued industrial guidelines.
AI and Digital Infrastructure Users Impact Benefiting from the democratisation of technology and increased high-performance computing capacity. Action Required Utilize the expanded infrastructure to support evolving AI workloads and digital services.