The Ministry of Electronics and Information Technology (MeitY) is reportedly in talks with the Ministry of Power to address the energy requirements of data centres, according to the government. Even prior to the recent developments around artificial intelligence (AI), there had already been significant demand for expanding data centre capacity to support cloud computing and related needs. However, this expansion has faced resistance due to concerns over the high-power consumption of data centres and their limited employment generation.

While India holds an advantage with its access to green power, the government highlighted that such power is not always firm or consistent, making energy storage solutions critical. Another major concern, as stated by the government, is the lack of adequate sub-station infrastructure needed to support data centre connectivity. These and several other issues are under consideration as part of the ongoing inter-ministerial discussions.