India Emerges as Prime Data Centre Hub with Robust 500GW National Grid, Confirms Piyush Goyal

New Delhi:

Union Minister Piyush Goyal stated on Monday that India has emerged as a preferred destination for data centres due to its abundant electricity supply and robust 500GW national grid capable of handling increasing demand.

During an energy sector press conference, Goyal, who previously served as Power and New & Renewable Energy Minister, emphasized that India possesses sufficient power capacity.

He highlighted that India's 500GW grid ranks among the world's largest integrated power networks.

"Unlike Europe or the United States, India benefits from a comprehensive national grid. This makes our country an attractive location for data centres planning future expansion. We have adequate power resources to fulfill the requirements of our citizens, agricultural sector, industries, and commercial establishments including data centres and GCCs," Goyal explained.

This statement comes as major technology companies including Google, Microsoft, and AWS have expressed significant investment interest in India.

In October, Google announced plans to invest USD 15 billion to develop an AI infrastructure hub in Andhra Pradesh, featuring a gigawatt-scale data centre in collaboration with Adani Group.

The Google project is expected to generate 5,000–6,000 direct employment opportunities and 20,000–30,000 total jobs in Andhra Pradesh.

Last week, Amazon Web Services (AWS) revealed their commitment to invest USD 7 billion for data centre expansion in Telangana over a 14-year period.

Earlier this month, Microsoft disclosed plans for a USD 17.5 billion investment in India to develop infrastructure and sovereign capabilities supporting the country's AI-focused future.

Regarding India's plans to increase coal-based thermal power generation capacity, Goyal explained that this expansion aims to meet the energy needs of India's population.

"We cannot allow people to experience power shortages. Increased coal production will also help reduce our fuel imports further. We've already decreased our import dependency and are exploring coal alternatives like synthetic gas conversion. We must recognize that as a developing nation, India requires transition time and affordable energy to support our large population's growing needs, industrial development, and the prosperity of ordinary citizens," he stated.

Goyal affirmed that India will take a pragmatic approach to maintaining low energy costs while simultaneously advancing clean energy frameworks.

He revealed that thermal power requirements are projected to reach 307GW by 2035.

Discussing the improved financial health of power generation companies, Goyal noted that their debt has significantly reduced from Rs 1.4 lakh crore four years ago to Rs 6,500 crore currently.

"As we progress toward Viksit Bharat@2047, India's energy sector will serve as a global case study in effectively managing scale, speed, and sustainability together," he remarked.

Meanwhile, Minister of State for Power Shripad Naik informed the Rajya Sabha in a written response that the current power requirement for data centres in India is approximately 1 GW, with projections indicating an increase to 13.56 GW by FY 2031-32 due to upcoming facilities.

He clarified that captive power arrangements are made by users for their own consumption, and presently, detailed information regarding electricity consumed specifically by data centres is not centrally maintained.