Data Centre Industry Stakeholders Push for Power, Regulatory Reforms in 2026

30 SEC SUMMARY

In 2026, a roundtable discussion with Commerce and Industry Minister Piyush Goyal focused on ensuring adequate power availability and regulatory measures for data centres. Stakeholders emphasized cluster-based transmission, renewable energy procurement, and streamlined approvals to boost India's AI infrastructure.

TABLE OF CONTENTS

1. Introduction
2. Stakeholder Participation
3. Key Discussion Points
4. Future Outlook
5. FAQs

KEY HIGHLIGHTS

• Stakeholders pushed for power availability and regulatory reforms.
• Focus on cluster-based transmission and renewable energy.
• Streamlined approvals to enhance investment certainty.
• Hyperscalers dominate data centre absorption.
• Expected USD 200 billion investment in the sector.

Introduction

On September 1, 2026, a roundtable meeting was held with Commerce and Industry Minister Piyush Goyal to discuss critical issues surrounding the data centre industry. Representatives from the Central and State Governments, global hyperscalers, data centre developers, investors, and infrastructure providers participated in the meeting. The primary focus was on ensuring adequate and reliable power availability, regulatory measures, and streamlined approvals to facilitate the rapid growth of India's digital economy and AI ecosystem.

Stakeholder Participation

The roundtable included senior representatives from the Governments of Andhra Pradesh, Gujarat, Haryana, Karnataka, Maharashtra, Tamil Nadu, Telangana, and Uttar Pradesh. Additionally, around 46 data centre companies were represented, including major players like Microsoft, Amazon, Delhivery, Ola, Swiggy, Zomato, and Uber. The meeting aimed to lay the foundation for high-impact reforms to accelerate investment and innovation in India's data centre sector.

Key Discussion Points

Power Availability

Stakeholders discussed measures to ensure adequate and reliable power availability for data centres. Key points included:

• Cluster-based Transmission and Substation Planning: To optimize power distribution and reduce transmission losses.

• Day-1 Sanctioned Load: Ensuring that power supply is available from the project's inception.

• Dual Power Feeders: Providing backup power sources to enhance reliability.

• Renewable Energy Procurement: Facilitating procurement of renewable energy across state boundaries to meet sustainability goals.

Regulatory Measures

The roundtable also focused on regulatory measures to reduce project timelines and improve investment certainty:

• Streamlined Single-Window Approvals: To simplify the approval process and reduce bureaucratic delays.

• Appropriate Building Regulations: To ensure data centres meet necessary safety and operational standards.

Ease of Doing Business

Discussions emphasized the need for an improved ease of doing business, particularly in the areas of power, land, regulatory, and fiscal issues.

Future Outlook

The discussions highlighted the rapidly increasing demand arising from cloud and Artificial Intelligence (AI) workloads. Hyperscalers accounted for more than 80% of data centre absorption in the first half of 2026, underscoring India's emergence as an AI infrastructure destination. The government expects investments in the data centre sector to reach around USD 200 billion, reflecting the scale of the opportunity created by India's rapidly growing digital economy and AI ecosystem.

FAQs

What were the main topics discussed in the roundtable?

The main topics included ensuring adequate power availability, regulatory measures to reduce project timelines, and streamlining single-window approvals for data centres.

Who participated in the roundtable?

The roundtable included representatives from the Central and State Governments, CEOs and senior representatives of global hyperscalers, data centre developers, investors, and infrastructure providers.

What is the expected investment in India's data centre sector?

The government expects investments to reach around USD 200 billion, driven by the growing demand for cloud and AI workloads.

Conclusion

The roundtable meeting with Commerce and Industry Minister Piyush Goyal laid the groundwork for actionable reforms aimed at accelerating investment and innovation in India's data centre sector. By addressing power availability, regulatory measures, and streamlining approvals, India is poised to become a global hub for data centre infrastructure, driving its digital economy and AI ecosystem forward.

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