NITI Aayog’s Frontier Tech Hub Unveils Data Centre Evaluation Framework to Help States Plan for Sustainable Growth

Key Highlights:

• NITI Aayog’s Frontier Tech Hub released the Data Centre Evaluation Framework on 14 October 2026.
• The framework aims to help State governments plan for the sustainable growth of data centers.
• It was developed with inputs from industry, MeitY, Ministry of Power, and DPIIT.
• India's data center capacity has grown from approximately 375 MW in 2020 to 1.5 GW currently.

Detailed Insights:

• The framework provides a practical approach for States to plan, evaluate, and facilitate data-center investments.
• It helps States assess infrastructure readiness, safeguard critical resources, and maximize long-term economic and strategic value.
• Data center growth is driven by increasing demand for Artificial Intelligence (AI), cloud computing, and data-intensive digital applications.
• Data centers require substantial resources like electricity, water, land, and connectivity, necessitating sustainable planning.
• The Government of India offers a tax holiday until 2047 for eligible foreign cloud service providers leveraging India-based data centers.
• The framework is structured around five pillars: Power and Energy; Water and Cooling; Siting and Environmental Sustainability; Economic and Strategic Value; and Policy, Governance and Implementation.
• Key recommendations include promoting renewable energy, evaluating basin-level water stress, rainwater harvesting, and lifecycle plans for e-waste.
• It also recommends identifying suitable data-centre zones, linking State incentives to measurable outcomes, and promoting Make in India.

Key Concepts Involved:

• NITI Aayog: A policy think tank of the Government of India, providing directional and policy inputs.
• Frontier Tech Hub: An initiative within NITI Aayog focusing on emerging technologies and their policy implications.
• Data Centre: A facility used to house computer systems and associated components, such as telecommunications and storage systems.
• MeitY: Ministry of Electronics and Information Technology, responsible for IT policy, strategy, and development.
• DPIIT: Department for Promotion of Industry and Internal Trade, responsible for formulating and implementing promotional and developmental measures for the industrial sector.