·PIB

Data centre capacity in the country has grown from 375 MW in 2020 to more than 1500 MW

In this note
  1. At a Glance
  2. Why in the News
  3. Background & Evolution
  4. Core Static Facts
  5. Multi-Dimensional Analysis
  6. Recent Developments (last 12-18 months)
  7. Prelims Hooks
  8. Mains Relevance
  9. Related Topics to Study Next
  10. Common Errors / Trap Areas
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1. At a Glance

  • Data centres = facilities housing servers, storage, networking for hosting/processing digital workloads; classified as critical digital infrastructure by MeitY [2].
  • India's installed DC capacity has quadrupled in five years — from ~375 MW (2020) to >1500 MW (2025) — reflecting cloud, AI, data-localisation and 5G demand [1][2].
  • Nodal ministry: Ministry of Electronics & Information Technology (MeitY) [2]; sector spans Prelims (S&T, Economy) and Mains GS-III (infrastructure, cyberspace).

2. Why in the News

  • PIB release dated 18 March 2026 by MeitY: DC capacity crossed 1500 MW, with 4 submarine cable systems being commissioned at Cable Landing Stations (CLS) and 3 more under planning [2].
  • Reaffirms India's pitch to be a global cloud & DC hub under the Digital India vision [2].

3. Background & Evolution

  • 2020: Installed DC capacity ~375 MW; MeitY released Draft Data Centre Policy for stakeholder comments [4].
  • 2020–22: TRAI recommendations on "Regulatory Framework for Promoting Data Economy through Data Centres, CDNs and Interconnect Exchanges" (2022) [3].
  • 2023: TRAI recommendations on Licensing Framework & Regulatory Mechanism for Submarine Cable Landing in India [3].
  • 2024: International Advisory Body formed to strengthen resilience of submarine telecom cables [3].
  • 2025: Capacity touches >1500 MW; Draft National Data Centre Policy targets additional 2000 MW by 2027 [1].

4. Core Static Facts

  • Nodal Ministry: MeitY [2].
  • Regulator (telecom/CLS): TRAI under TRAI Act, 1997; data-protection backbone: Digital Personal Data Protection Act, 2023 (context).
  • Capacity: 375 MW (2020) → 1500+ MW (2025); draft target +2000 MW by 2027 [1][2].
  • Cable Landing Stations host: Mumbai, Chennai, Kochi, Tuticorin, Trivandrum — ~17 international subsea cables across 14 CLS [3].
  • State Data Centre (SDC) Scheme: MeitY-funded under National e-Governance Plan (NeGP) for state-level consolidation of govt IT infra [4].
  • Incentives recommended by TRAI: capital/interest subsidy, ≥75% central share for states with low DC footprint; GST + customs duty exemption on CLS/submarine O&M goods [3].

5. Multi-Dimensional Analysis

  • Economic — DC industry attracts hyperscaler capex (AWS, Microsoft, Google, Adani, Yotta, CtrlS); enables IT/ITeS export competitiveness; coastal states (Gujarat IT/ITeS Policy 2022-27 cited as model) compete via subsidies [3].
  • Strategic / Geopolitical17 subsea cables carry >95% of India's international internet traffic; resilience is a national-security concern, prompting the 2024 International Advisory Body on cable protection [3].
  • Scientific / Technological — Push for energy-efficient, green data centres using renewables; alignment with AI compute mission [1].
  • Legal / Regulatory — TRAI recommends easing Right of Way charges, customs bonds for cable-repair vessels, SEZ-like status for "Cable Depots" [3]; DPDP Act, 2023 drives data localisation demand.
  • Federal / Administrative — Concentration in Mumbai/Chennai; central guidelines proposed to incentivise DC Parks in under-served states with ≥75% central funding [3].

6. Recent Developments (last 12-18 months)

  • 18 Mar 2026 — PIB/MeitY release: capacity > 1500 MW; 4 submarine cable systems under commissioning, 3 under planning [2].
  • 2025 — MeitY's Draft National Data Centre Policy circulated targeting +2000 MW by 2027 [1].
  • 2024 — Formation of International Advisory Body on Submarine Cable Resilience (>200 global cable repairs reported that year) [3].

7. Prelims Hooks

  • DC capacity grew from 375 MW (2020) to >1500 MW (2025) [2].
  • Nodal ministry: MeitY, not Ministry of Communications [2].
  • 4 submarine cable systems being commissioned; 3 under planning (as of Mar 2026) [2].
  • India has ~17 international subsea cables across 14 CLS [3].
  • CLS-host cities: Mumbai, Chennai, Kochi, Tuticorin, Trivandrum [3].
  • Draft National Data Centre Policy target: +2000 MW by 2027 [1].
  • State Data Centre (SDC) scheme operates under National e-Governance Plan (NeGP) via MeitY [4].
  • TRAI 2023 paper: "Licensing Framework for Submarine Cable Landing in India" [3].
  • Submarine cable regulator: TRAI; statute: TRAI Act, 1997 [3].
  • Gujarat IT/ITeS Policy 2022-27 cited as model for CLS incentives [3].

8. Mains Relevance

  • GS-III — Infrastructure (digital); Science & Tech; Internal Security (cable resilience, data sovereignty).
  • GS-II — Government policies; Centre-State (concentration of DCs in few states).
  • Probable stems: 1. "India's data centre capacity has quadrupled since 2020. Examine the policy and infrastructural ecosystem driving this growth and the strategic risks of concentration." (GS-III) 2. "Submarine cables are the silent arteries of India's digital economy. Discuss the regulatory and security challenges in their protection." (GS-III) 3. "Critically evaluate the draft National Data Centre Policy in the context of data localisation under the DPDP Act, 2023." (GS-II/III)

9. Related Topics to Study Next

  • Digital Personal Data Protection Act, 2023 — drives data-localisation demand for DCs.
  • National e-Governance Plan (NeGP) & State Data Centres — public-sector DC backbone.
  • Bharat 6G Vision & 5G rollout — edge-DC demand driver.
  • IndiaAI Mission (2024) — GPU/compute infrastructure overlap.
  • Submarine Cable Resilience / CANI & Kochi-Lakshadweep cables — connectivity infra.
  • TRAI Act, 1997 — regulatory framework for CLS licensing.
  • Semiconductor Mission (SPECS, DLI) — adjacent hardware-stack policy.
  • Green hydrogen / RE-100 — for sustainable DC energy sourcing.

10. Common Errors / Trap Areas

  • DC policy is under MeitY, not DoT (DoT handles licensing of CLS access providers, not DC capacity policy).
  • TRAI recommends; licensing decision rests with DoT/Govt — TRAI is not the licensor.
  • Confusing State Data Centre (SDC) scheme (govt e-gov infra) with commercial hyperscaler DCs.
  • The 1500 MW figure is installed capacity, not under-construction pipeline (industry pipeline projections are higher).
  • Capacity figure refers to 2025, announced in March 2026 PIB release — not a 2026 figure.

Sources

  1. 1Data centre capacity in the country has increased from about 375 MW in 2020 to around 1500 MW by 2025pib.gov.in · tier 1
  2. 2Data centre capacity in the country has grown from 375 MW in 2020 to more than 1500 MWpib.gov.in · tier 1
  3. 3TRAI recommendations on Submarine Cable Landing & Data Economy; International Advisory Body on Submarine Cable Resiliencepib.gov.in · tier 1
  4. 4MeitY — State Data Centre Policy Guidelinesmeity.gov.in · tier 1
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