New Delhi | India is rapidly emerging as a global powerhouse for data centres, with its robust power infrastructure and national grid giving it a unique edge over other countries. Union Commerce and Industry Minister Piyush Goyal on Monday said that India’s 500-gigawatt electricity capacity and integrated power grid have positioned it as the most reliable and cost-efficient destination for global technology companies.
Speaking at a press briefing on the energy sector, Goyal said, “Europe doesn’t have a national grid. The United States doesn’t have one either. But India does. This makes us one of the best places in the world for data centre investments.”
The Minister, who earlier handled the Power and New & Renewable Energy portfolios, stressed that India’s grid has the strength and flexibility to meet any surge in demand over the coming decade. “Our power system can simultaneously meet the needs of people, farmers, industries, and digital enterprises. We have built an energy ecosystem capable of supporting the world’s largest data and AI infrastructure,” he said.
Big Tech Bets on India’s Energy Edge
Goyal’s comments come at a time when global technology majors are making record investments in India’s digital infrastructure. Over the past year, companies like Google, Amazon Web Services (AWS), and Microsoft have announced ambitious projects that underline India’s growing importance as a digital hub for Asia.
In October, Google unveiled a plan to build a gigawatt-scale data centre in Andhra Pradesh, in partnership with the Adani Group. The project, valued at $15 billion, will serve as a cutting-edge AI infrastructure hub designed to support next-generation computing and cloud services.
Following that, Amazon Web Services (AWS) announced a $7-billion expansion in Telangana to broaden its data centre footprint in India. The investment, spread over 14 years, will significantly boost AWS’s cloud capacity and local data processing capabilities.
Meanwhile, Microsoft confirmed an investment of $17.5 billion to strengthen India’s AI ecosystem and build advanced digital infrastructure that supports both enterprises and government-led initiatives.
Surging Demand for Digital Power
India’s growing status as a digital economy is driving up its energy demand. Minister of State for Power Shripad Naik recently told Parliament that data centres currently consume around 1 GW of power, but the demand is expected to rise to 13.56 GW by 2031-32.
Experts believe India’s diversified energy mix — which combines coal, renewables, hydro and nuclear power — provides a stable foundation to support this rising load.
Goyal added that India’s power tariffs are among the most competitive globally, offering long-term predictability to investors. “We have ensured both affordability and sustainability. Our target is not just to provide electricity, but to build a foundation for the digital economy,” he said.
He further noted that as the global data centre industry grows at a double-digit pace, India is set to emerge as the preferred destination for green and hybrid data centres, leveraging its renewable energy expansion and low operational costs.
Balancing Coal, Clean Energy and Growth
Responding to questions about India’s reliance on coal, Goyal clarified that thermal power generation would continue to remain part of the country’s balanced energy mix. “We cannot deprive citizens and industries of reliable electricity. New coal capacity will be added responsibly to reduce import dependency,” he said.
The government, he added, is also working on cleaner technologies like coal gasification and hybrid energy systems to reduce emissions and make coal-based generation more efficient. Projections suggest India’s thermal power requirement could reach 307 GW by 2035.
“As a developing nation, our responsibility is twofold — to provide affordable energy for all and to ensure a gradual shift toward renewable and sustainable sources,” Goyal remarked.
Power Sector Reforms and Financial Strength
Goyal also highlighted the financial turnaround achieved in the power sector over the past few years. “Just four years ago, power distribution companies were burdened with debts of ₹1.4 lakh crore. Today, that figure has dropped to around ₹6,500 crore,” he said, crediting reforms and better fiscal management.
He added that India’s power sector is now being viewed globally as a case study in scale, efficiency, and resilience. “As we move towards ‘Viksit Bharat @2047’, the energy sector will stand as a symbol of our capability to deliver growth with stability,” he said.
India’s steady march toward becoming the “Digital Powerhouse of the World” is built on its energy advantage — a unified grid, consistent supply, and ambitious clean power goals. The convergence of energy security and digital infrastructure is turning India into the world’s most promising destination for cloud, AI, and data innovation. Over the next decade, this alignment could redefine the global geography of the digital economy, with India at its centre.
