Listen

Pause Resume

India has emerged as a preferred destination for data centres due to its reliable power supply and robust 500 GW national grid, according to Union Minister Piyush Goyal. Speaking at a press conference on the energy sector, Goyal highlighted India’s advantages in meeting the growing demand for power from data centres and other industries.

“We have sufficient power capacity in the country, and our 500 GW grid is one of the largest in the world,” Goyal said. “Europe does not have a national grid, and even the US does not have a national grid. But India has a national grid, making us a preferred destination for data centres.”

The minister’s comments come amid a surge in interest from tech giants such as Google, Microsoft, and Amazon Web Services (AWS) to invest in India. Google recently announced a $15 billion investment to build an AI infrastructure hub in Andhra Pradesh, which includes a gigawatt-scale data centre in partnership with the Adani Group. AWS has also pledged to invest $7 billion to expand data centres in Telangana over 14 years.

Goyal emphasised that India’s growing power demand will be met through a combination of sources, including coal-based thermal power generation. “We cannot allow people to be deprived of adequate power… coal production will also help us reduce imports further,” he said.

The government is also exploring alternatives to coal, such as converting coal into synthetic gas, to meet the country’s energy needs while reducing its carbon footprint. India’s thermal power requirement is projected to grow to 307 GW by 2035.

In a written reply to the Rajya Sabha, Minister of State for Power Shripad Naik stated that the power requirement for data centres in India is currently around 1 GW and is expected to increase to 13.56 GW by FY 2031–32. The government is working to ensure a stable power supply to meet the growing demand from data centres and other industries.

Goyal expressed confidence in India’s energy sector, saying, “As we march towards Viksit Bharat@2047… India’s energy sector will be seen as a global case study in managing scale, speed, and sustainability together.”