New Delhi, May 4 -- India has entered the global race of data centre expansion with visible scale and policy momentum. Niti Aayog places India's current capacity for data centres at about 1.3-1.4 gigawatt (GW) and sees a pathway to 10-12GW by 2035, with economic potential of $10-15 billion.

The Union budget for 2026-27 proposed a tax holiday until 2047 for eligible foreign providers using India-based data facilities for global operations, and states are competing aggressively for investments with land and other incentive packages. Recently, Google and Reliance Industries proposed large-scale data centre investments in Visakhapatnam.

Overall investments in the sector are set to exceed $100 billion by 2027. That scale implies a substantia...