Government Statement on the Data Centre Growth

 

On December 15, 2025, Union Minister Piyush Goyal expressed that India is a favored spot for data centres as the country has enough power and a strong national grid. While explaining the energy sector at a press conference, he pointed out that India’s 500GW total power capacity is more than enough to meet additional power requirements from data centre operations and other industries.

 

Power Infrastratecture Strength

 

According to Goyal, the Indian national grid is one of the biggest in the world and thus, the country has a competitive advantage over areas that do not have a unified national grid, for instance, Europe and some parts of the United States. He stressed that India’s stable and solid power infrastructure would be instrumental in the company of a data centre trend, securing operations that are longtime investments and further, drawing investors in the sector as far as global demand for data centres is concerned.

 

Tech Giants Investing in India

 

The minister made a reference to the investment pattern of the global technology giants to illustrate the point. To support the statement, Google has made public a USD 15 billion investment plan for AI infrastructure and diverse activities in Andhra Pradesh, wherein part of the venture includes a large data centre to be built with the help of the Adani Group. In the meantime, AWS (Amazon Web Services) is looking to install 13 data centres in the Telangana district, worth USD 7 billion over the coming 14 years, while Microsoft is pouring USD 17.5 billion into a project to establish AI infrastructure for sovereign use in India.

 

Balancing Power and Growth

 

Meanwhile, Goyal affirmed that a new coal-fired power plant (heat generation from coal) is part of the development plans that will raise the power output of the region (the demand will also come from the data centres sector) and concurrently mature clean power sources will keep expanding. He explained that the India set up was going to be well-balanced—resting energy prices at industrial growth levels, while pushing a cleaner energy framework forward.

 

Regarding data centres' demand for the power, government responses given in the Rajya Sabha pointed out that the current data centre power demand of about 1GW could rise up to around 13.56GW by 2031-32 due to new facilities. At the same time, some locations are arranging for their captive power solutions though there is no centralized tracking of all data centre energy use yet.

 

National Grid and Economic Impact

 

India’s national grid and stable power infrastructure play a strategic role in attracting tech investments. Goyal showed that the main power companies in India have tremendously turned around their financial health by slashing their debt levels in the past few years, which is a step toward the long-term power supply sustainability that they further back.

 

Technology Sector Outlook

 

On the other hand, the government perceives the push made by India in data centres as one of the key elements of its larger ambition to support the digital transformation, the growth of AI, and the widespread use of digital infrastructure. Backed by robust power capacity and an enabling policy environment, India aims to keep its attractiveness as a global hub for data infrastructure ‌‍ ​‍​‌‍​‍‌​‍​‌‍​‍‌investment.