India preparing comprehensive data centre policy to boost sector

India's government is developing a dedicated data centre policy aimed at strengthening the hyperscale data centre sector, according to official statements. The proposed policy is designed to streamline regulatory approvals and grant infrastructure status to data centre operators, facilitating faster development and deployment.

As part of the policy framework, the government has announced a tax holiday until 2047 for eligible foreign cloud providers, offering significant fiscal incentives to attract international investment in India's data centre infrastructure.

The policy also recognises the potential of artificial intelligence in enhancing operational efficiency. AI technologies can improve power generation efficiency and grid flexibility for data centres, addressing one of the sector's key operational challenges. These measures are expected to strengthen India's position as a global data centre hub and support the growing demand for cloud computing and digital infrastructure.