The government has reportedly initiated an exercise to map countrywide projected power demand from upcoming data centres as it gears up for their development. The power ministry has asked states to assess the expected consumption by data centres in consultation with the industry. The ministry has also held meetings with Nasscom and the Ministry of Electronics and Information Technology, and will continue to engage with them.

Another meeting would take place to deliberate on the projected requirements and locations so that infrastructure can be readied in time. Till the data centres are developed, transmission lines and other infrastructure can be readied to cater to their demand. The ministry discussed with some states the possibility of creating regulatory frameworks for streamlining processes for their establishment.

Lower latency, non-seismic zones, security concerns, land-related permissions and skilled manpower availability are critical factors in deciding the location of data centres in the country. Factors such as reliable clean power will play a major role in the expansion of this industry.