- 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.
Why it matters
- Helps States match data-centre investment to power, water and land availability.
- Supports India's AI and digital ambitions through planned, sustainable capacity.
- Data centres underpin digital payments, e-Governance, cloud and AI services.
- They support data sovereignty and self-reliance in digital infrastructure.
Problems
- Data centres place heavy demands on electricity, water, land and connectivity.
- The framework is advisory, so State adoption and uniform application may vary.
- Demand for electricity and cooling water rises sharply with capacity.
- Dependence on imported hardware such as servers, and cyber and data-governance risks.
Way forward
- Plan grid and water infrastructure ahead of demand, with renewable and storage-backed power.
- Link State incentives to measurable outcomes and monitor project commitments.
- Use renewable and nuclear power, and efficient cooling such as closed-loop liquid cooling.
- Enforce efficiency standards and build domestic capability in semiconductors and IT hardware.
Put in your answer
Capacity data: Capacity grew from about 375 MW (2020) to about 1.5 GW, showing rapid AI and cloud-driven demand.
Resource recommendations: The framework suggests rainwater harvesting, on-site water treatment and lifecycle plans for e-waste and batteries.
Investment: Investments of nearly USD 70 billion are underway, with USD 90 billion more announced.
IndiaAI Mission: The IndiaAI Mission has an outlay of ₹10,371.92 crore and is a key driver of data-centre growth.
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UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
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.