India a preferred destination for Data Centres on back of strong power grid: Piyush Goyal
New Delhi, December 15
India has the potential to become a preferred global destination for data centres, supported by a strong and integrated national power grid and a transformed energy sector, Commerce and Industry Minister Piyush Goyal said Monday, during a media interaction.
The Union minister said that when Prime Minister Narendra Modi assumed office in 2014, the power sector was in poor condition, marked by frequent outages, low renewable energy capacity and inadequate infrastructure.
Over the past 11 years, however, the sector has undergone a significant transformation, ensuring reliable and affordable electricity supply across the country, Goyal said.
Goyal noted that India now operates a single, integrated national power grid, making it one of the largest in the world.
This robust grid is capable of managing redundancy and handling sudden spikes in electricity demand, such as those generated by large data centres. As a result, India is increasingly being viewed as an attractive destination for data centres and Global Capability Centres, he said.
"We have a 500 gigawatt grid, one of the largest in the world. And a single integrated grid which can take care of the redundancy requirement, the surge of power which data centers cause, can best be handled by a country like India because of our massive grid. So we are a preferred destination for data centers.
As we are planning the growth in the years to come, there will be sufficient power available to make sure we can meet the needs of our people, our farmers, our industry, and our commercial establishments, including data centers and GCCs," he said.
He said the government has undertaken comprehensive planning to ensure sufficient power availability in the coming years to meet the needs of households, farmers, industry, commercial establishments and the rapidly expanding digital infrastructure ecosystem.
Highlighting reforms in the energy sector, Goyal said renewable energy capacity has expanded sharply since 2014. Solar power capacity has increased nearly 46 times, while wind energy capacity has grown about 2.5 times. Petroleum refining capacity has also expanded, and natural gas connectivity has reached consumers at the last mile.
At the same time, India's dependence on coal imports has been steadily reduced, helping conserve foreign exchange reserves. Measures such as rationalisation of coal linkages and streamlining of coal supply chains have improved efficiency and helped keep power tariffs under control, benefiting consumers, he noted.
The minister also referred to the SHANTI Bill, which is before the Parliament. The Bill seeks to provide a major boost to nuclear energy development in the country.
The proposed legislation aims to encourage participation by public and private players, including through public-private partnerships, and promote the deployment of small modular reactors at scale.
According to Goyal, nuclear energy will play an important role in ensuring round-the-clock availability of clean and reliable power, particularly for energy-intensive sectors such as data centres.
"SHANTI Bill has been brought in, and it is currently before the Parliament, which will take India to new heights in terms of nuclear energy. It will encourage public and private players, besides public-private partnerships. It will also ensure small modular reactors are set up in large numbers in India, which will negate power cuts, raise renewable energy mix in overall power basket. Solar, wind, and nuclear combined will be able to meet power demand 24*7," Piyush Goyal said.
He said a combination of solar, wind and nuclear power would help meet India's growing electricity demand while increasing the share of clean energy in the overall power mix.
Goyal highlighted that the government has ensured electricity access to millions of households that were previously unconnected through the SAUBHAGYA scheme. He said the transformation of India's power sector is built on five key pillars: universal access, affordability, availability, financial viability, and sustainability with global responsibility.
— ANI
Reader Comments
Good to hear about the planning, but I hope this doesn't mean power cuts for residential areas increase because supply is diverted to these large commercial data centres. The government must ensure that 'sufficient power for all' includes homes and farmers first, not just industry.
The transformation since 2014 is undeniable. I remember constant load-shedding in my childhood. Now, even in my tier-2 city, power cuts are rare. This kind of infrastructure is what will make us a true Vishwaguru in the tech space. The SHANTI Bill for nuclear energy is a game-changer!
Excellent vision. Data centres are power-hungry beasts. If our grid can handle that surge reliably and with a growing mix of green energy, it's a huge competitive advantage over many other countries. This will boost our digital sovereignty and data localization goals. Jai Hind!
As someone working in the tech sector, this is promising news. A stable power infrastructure is the number one ask for companies looking to set up GCCs or data centres here. The integrated grid and focus on renewables make India a very compelling destination from a long-term operational perspective.
Solar capacity up 46 times is a staggering achievement. But the real test will be in execution and distribution. We need to make sure the benefits of this massive power infrastructure reach every corner of the country, not just the metro cities where these data centres will likely come up.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.