India Prepares Data Center Policy to Attract AI Hyperscalers

Union Minister of State for Electronics and Information Technology Jitin Prasada announced that India is preparing to roll out a new policy for data centers to attract hyperscalers. Speaking at the Central Electricity Authority’s Brainstorming Conclave, Prasada stated that India is a fertile ground for these facilities but warned that green power generation is not keeping pace with the rapid growth of artificial intelligence and data center requirements.

Prasada emphasized that countries with sufficient green power generation will hold a competitive edge in attracting AI investments. However, he cautioned that the expansion of energy-intensive infrastructure must be managed so that it does not increase electricity costs for ordinary consumers.

Beyond energy concerns, Prasada called for the strengthening of the domestic semiconductor ecosystem. He argued that increasing local production is necessary to mitigate risks from global supply-chain disruptions and reduce the country's dependence on foreign suppliers.