NITI Aayog and Deloitte launch data‑centre evaluation framework to safeguard power and water resources
A joint NITI Aayog‑Deloitte report released on Oct 14, 2026 sets out a five‑pillar system for assessing data‑centre proposals, aiming to align India’s fast‑growing digital backbone with sustainable electricity and water use.
What the new framework says
The NITI Aayog, in partnership with Deloitte India, published a Data Centre Set‑Up Evaluation Framework on 14 October 2026. The document shifts approval from a case‑by‑case basis to a campus‑wide, corridor‑planning approach. Before a state can grant a licence, it must demonstrate verified availability of electricity, water and related infrastructure for the entire proposed site.
Why it matters now
India’s data‑centre count stood at 271 in January 2026, with an installed capacity of about 1.57 GW as of August 2026 (Union government data). Industry forecasts see capacity swelling to 4.5‑6.5 GW by 2030. Correspondingly, electricity use rose from 13 TWh in 2024 (≈0.8 % of national demand) to a projected 57 TWh by 2030 (≈2.6 % of demand), according to the Council on Energy, Environment and Water (CEEW). NITI Aayog member Abhay Karandikar warned that data‑centre consumption could reach 1‑2 % of total electricity within the next decade.
Key provisions
| Pillar | Core requirement |
|---|---|
| Resource verification | States must provide 20‑30 year seasonal water‑availability assessments and confirm grid capacity for power needs |
| Economic appraisal | Projects must quantify land use, utility concessions and other incentives, with benefits tied to measurable outcomes such as jobs and renewable‑energy usage |
| Environmental safeguards | Protection of existing water users and climate‑risk assessments are mandatory |
| Governance | A central audit mechanism, overseen by the Ministry of Electronics and Information Technology (MeitY), will monitor compliance |
| Infrastructure funding | Developers are expected to fund dedicated grid assets for their campuses |
The framework also encourages renewable‑energy integration, efficient cooling technologies, and local procurement, positioning data‑centres as strategic infrastructure that can bolster India’s global digital standing.
State‑level race and local concerns
Maharashtra and Tamil Nadu currently lead the state‑wise push for data‑centre investment, while Gujarat, Uttar Pradesh, Andhra Pradesh, Odisha, Telangana and Madhya Pradesh have announced ambitious targets. However, projects have sparked community push‑backs. In Thane, Maharashtra, residents protested an Amazon data‑centre over fears of water stress and proximity to schools and hospitals. A proposed $15 billion Google facility near Visakhapatnam faced similar ecological objections.
Government’s roadmap
Karandikar reassured that India’s energy roadmap—combining renewables, expanded nuclear capacity and grid upgrades—will meet the projected demand. By tying incentives to employment generation, renewable‑energy usage and local sourcing, the framework seeks to turn resource challenges into growth opportunities.
What’s next?
The report does not specify whether the recommendations are legally binding, but the NITI Aayog signalled that states will need to align their investment pitches with the framework’s criteria. As digital services, AI workloads and upcoming 6G deployments accelerate, the government hopes the new system will keep India’s data‑centre ecosystem stable, sustainable and internationally competitive.
Broader impact
If adopted widely, the framework could curb unchecked water draw, ensure grid reliability, and protect local communities—key steps toward maintaining the nation’s reputation as a secure, resilient hub for global tech firms.
Key numbers
| What | Figure | Source |
|---|---|---|
| Data centres in India (Jan 2026) | 271 | Council on Energy, Environment and Water report |
| Installed capacity (Aug 2026) | 1.57 GW | Union government data |
| Projected capacity (2030) | 4.5‑6.5 GW | Industry estimates cited by NITI Aayog |
| Electricity use 2024 | 13 TWh (≈0.8 % of total) | CEEW |
| Projected electricity use 2030 | 57 TWh (≈2.6 % of total) | CEEW |
| Potential share of total power (next decade) | 1‑2 % | NITI Aayog member Abhay Karandikar |
| Framework release date | 14 Oct 2026 | NITI Aayog and Deloitte India |
In this story
| Name | Role in the story |
|---|---|
| Deloitte India | Partner in developing the framework |
| NITI Aayog | Co‑author of the evaluation framework |
| Ministry of Electronics and Information Technology | Designated nodal ministry for the framework |
