UPSC Prelims Practice Questions — Data centre capacity in the country has grown from 375 MW in 2020 to more than 1500 MW

Q1. Which one of the following accounts for the single largest share of India's installed data centre capacity?

  • A. Mumbai and Navi Mumbai region
  • B. Chennai
  • C. Bengaluru
  • D. Hyderabad

Q2. With reference to the institutional framework governing data centres in India, consider the following statements: 1. The Ministry of Electronics and Information Technology is the nodal ministry for the data centre sector. 2. Data centres are classified by MeitY as critical digital infrastructure. 3. The State Data Centre scheme is funded by the Securities and Exchange Board of India. 4. The Digital Personal Data Protection Act, 2023 serves as the data-protection backbone for the sector. Which of the above is/are correctly identified?

  1. The Ministry of Electronics and Information Technology is the nodal ministry for the data centre sector.
  2. Data centres are classified by MeitY as critical digital infrastructure.
  3. The State Data Centre scheme is funded by the Securities and Exchange Board of India.
  4. The Digital Personal Data Protection Act, 2023 serves as the data-protection backbone for the sector.
  • A. 1 and 2 only
  • B. 1, 2 and 4
  • C. 2, 3 and 4
  • D. 1, 3 and 4

Q3. Consider the following statements about the growth of India's data centre capacity: 1. Installed capacity was about 375 MW in 2020 and crossed 1500 MW by 2025. 2. This amounts to roughly a four-fold rise over the five-year period. 3. The market is projected to reach over 2 GW of IT capacity by 2030. Which of the statements given above is/are correct?

  1. Installed capacity was about 375 MW in 2020 and crossed 1500 MW by 2025.
  2. This amounts to roughly a four-fold rise over the five-year period.
  3. The market is projected to reach over 2 GW of IT capacity by 2030.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q4. Under the Draft National Data Centre Policy, the term 'Data Centre Economic Zone (DCEZ)' refers to which one of the following?

  • A. Specialised zones offering conducive IT and non-IT infrastructure, power, connectivity and regulatory environment, proposed as a central sector scheme
  • B. Special Economic Zones reserved exclusively for submarine cable depots
  • C. Coastal districts notified for hosting cable landing stations
  • D. Tax-free enclaves created for foreign cloud providers under Budget 2026-27

Q5. With reference to the Draft National Data Centre Policy, consider the following: 1. It targets an additional 2000 MW of data centre capacity by 2027. 2. It proposes setting up at least four Data Centre Economic Zones as a central sector scheme. 3. It proposes declaring data centres an Essential Service under the Essential Services Maintenance Act, 1968. 4. It requires that every data centre in India must be wholly owned by foreign hyperscalers. Which of the above is/are correctly identified?

  1. It targets an additional 2000 MW of data centre capacity by 2027.
  2. It proposes setting up at least four Data Centre Economic Zones as a central sector scheme.
  3. It proposes declaring data centres an Essential Service under the Essential Services Maintenance Act, 1968.
  4. It requires that every data centre in India must be wholly owned by foreign hyperscalers.
  • A. 1 and 2 only
  • B. 2, 3 and 4
  • C. 1, 2 and 3
  • D. 1, 3 and 4

Q6. Which one of the following carries the overwhelmingly largest share of India's international internet traffic?

  • A. Submarine (undersea) optical fibre cables
  • B. Geostationary communication satellites
  • C. Terrestrial cross-border fibre links
  • D. Microwave radio relay links

Q7. The recommendations on the 'Licensing Framework and Regulatory Mechanism for Submarine Cable Landing in India' were issued by which one of the following?

  • A. Telecom Regulatory Authority of India (TRAI)
  • B. Department of Telecommunications (DoT)
  • C. Ministry of Electronics and Information Technology (MeitY)
  • D. National Internet Exchange of India (NIXI)

Q8. As per TRAI's 2022 recommendations for promoting the data economy, Content Delivery Network (CDN) providers should be registered with which one of the following?

  • A. Department of Telecommunications (DoT)
  • B. Ministry of Electronics and Information Technology (MeitY)
  • C. Telecom Regulatory Authority of India (TRAI)
  • D. Securities and Exchange Board of India (SEBI)

Q9. With reference to measures announced in Union Budget 2026-27 to make India a global hub for cloud and data-centre infrastructure, consider the following: 1. A tax holiday up to 2047 for eligible foreign cloud service providers using India-based data centres. 2. A safe-harbour margin of 15% on cost for related-entity Indian data centres. 3. Around USD 90 billion of investments announced in the sector. 4. Exemption of foreign cloud providers from routing services to Indian customers through an Indian reseller entity. Which of the above is/are correctly identified?

  1. A tax holiday up to 2047 for eligible foreign cloud service providers using India-based data centres.
  2. A safe-harbour margin of 15% on cost for related-entity Indian data centres.
  3. Around USD 90 billion of investments announced in the sector.
  4. Exemption of foreign cloud providers from routing services to Indian customers through an Indian reseller entity.
  • A. 1, 2 and 3
  • B. 2 and 4
  • C. 1 and 4
  • D. 1, 2, 3 and 4

Q10. How many members does the International Advisory Body for Submarine Cable Resilience, set up by the ITU with the ICPC, have?

  • A. 20
  • B. 30
  • C. 40
  • D. 50
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