Science and technology

Data Centres in India

GS3 Science & Technology / InfrastructurePrelims and Mains

In the news since 14 September 2026 · last on 15 October 2026

Why in news
On 14 October 2026, NITI Aayog's Frontier Tech Hub released the Data Centre Evaluation Framework to help States plan sustainable data-centre growth.
What it is
The Data Centre Evaluation Framework is a decision-support tool from NITI Aayog's Frontier Tech Hub. It helps State governments assess data-centre proposals against infrastructure, environment, economic value and readiness. It adds no new layer of regulation.
Issuing body
The framework was released by NITI Aayog's Frontier Tech Hub, with inputs from industry, MeitY, Ministry of Power and DPIIT.
Five pillars
Power and Energy; Water and Cooling; Siting and Environmental Sustainability; Economic and Strategic Value; Policy, Governance and Implementation.
Capacity growth
India's data-centre capacity rose from about 375 MW in 2020 to about 1.5 GW now.
Tax holiday
Eligible foreign cloud service providers using India-based data-centre infrastructure get a tax holiday until 2047.
Nature of tool
It is a decision-support tool for States, not a regulation.
Infrastructure status
Union Budget 2022-23 added data centres to the Harmonized List of Infrastructure. This gives them easier access to credit.
NIC data centres
NIC runs National Data Centres in Delhi, Pune, Hyderabad and Bhubaneswar. It also runs 37 smaller data centres in State capitals.
BIS standards
BIS technical committee LITD 31 covers cloud computing, IT and data centres. Its standards cover PUE, CUE, CER and WUE.
Power demand
The Central Electricity Authority says data-centre demand could reach 17 GW by 2031-32.

Don’t confuse with Colocation vs active compute: The framework asks States to distinguish colocation (leased space and power for others' equipment) from active compute services (processing such as AI workloads).

Don’t confuse with NITI Aayog framework vs regulation: The framework is advisory for States. It does not create a regulator or binding rules.

Don’t confuse with PUE vs WUE vs CUE: PUE measures electricity-use efficiency, WUE measures water-use efficiency, and CUE measures carbon emitted per unit of IT energy.

Don’t confuse with ECBC vs ECSBC: Both are building energy codes notified by BEE. ECBC is the 2017 code and ECSBC is the 2024 code, which adds sustainability.

Science and technology: 57 Prelims questions since 2013; most test the concept behind the news, not the news itself. In Mains, 12 news-triggered questions.

No practice question for this one; the card may still help an answer. Why: NITI Aayog framework on data centres is a lasting topic, but no clear provisions for statements; reports are 4% of Prelims questions.

Worth revising until Prelims 2028: most news questions come within two years of the event.

Each time it was in the news

  1. 15 October 2026

    On 14 October 2026, NITI Aayog's Frontier Tech Hub released the Data Centre Evaluation Framework to help States plan sustainable data-centre growth.

  2. 14 September 2026

    On 14 September 2026, PIB published an explainer on data centres in India. It covers installed capacity, the policy and tax support given to the sector, and energy and water planning.