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Data Centres: Boom and Backlash
18OCT

India vows data centres won't lift bills

3 min read
13:11UTC

Jitin Prasada promised a dedicated data-centre policy on 14 October so households do not pay more, as India's power planner reviews what large data centres do to the grid.

IndustryDeveloping
Key takeaway

India promises a data-centre policy to protect household bills, with no scope or date yet.

"We don't want to get into that," Jitin Prasada, India's junior minister for electronics and IT, said on 14 October of countries where data centres take power and consumers end up paying more⁠1. Speaking at an event of the Central Electricity Authority (CEA), the national power-planning body, he said a dedicated data-centre policy is coming. He gave no scope and no date.

The authority had set up a committee, reported on 1 October, on the operational, policy and regulatory issues large data centres raise, including grid stability and cyber risk to the power sector⁠2. It expects data-centre demand to reach about 17 GW by 2031-32 (the financial year to March 2032). Installed data-centre capacity is 1,575 MW, a figure the government gave in August, up from 375 MW in 2020.

The planner's 17 GW is about eleven times that installed figure, six years out, though the two may be counted differently: one is projected demand, the other installed capacity. Gujarat alone targets 7.5 GW under the subsidised state policy it formally published in August, which runs to 2029. That one state's target is 44% of the national projection for 2031-32.

Residents near Amazon's site at Thane, outside Mumbai, have protested over power, water and noise, and campaigners in Visakhapatnam accuse Google's $15bn project of harming wildlife and misusing temple land, Reuters reported⁠3. Both companies deny wrongdoing. Those are the households Prasada's policy promises to protect.

Deep Analysis

In plain English

Data centres are large buildings of computers that need a lot of electricity, around the clock. India expects many more of them. The Central Electricity Authority, the government body that plans the power system, thinks their demand could reach about 17 gigawatts within six years. A minister has promised a national policy so ordinary families do not end up paying for the extra power lines and plants. He has not yet said how.

Deep Analysis
Root Causes

India's Electricity Act 2003 leaves retail tariffs to state electricity regulatory commissions. Commercial and industrial customers pay above cost to cross-subsidise farmers and households, so a data centre on the state distribution company's tariff helps fund cheaper domestic power.

The risk to households comes from data centres leaving that tariff. Open access and captive renewable supply let large users buy power directly, which shrinks the paying base that carries the cross-subsidy.

Transmission timing adds a second pressure. Interstate lines take years to build, so a cluster that arrives faster than the network can force costly short-term power purchases that state utilities pass on.

What could happen next?
  • Meaning

    The centre has put household bill protection on the record before any national rule exists.

    Immediate · Reported
  • Risk

    State subsidy competition may undercut any central rule, since retail tariffs sit with state regulators.

    Medium term · Assessed
  • Consequence

    The Central Electricity Authority committee's findings may shape transmission planning for data-centre clusters.

    Short term · Suggested
First Reported In

Update #16 · Malaysia bills data centres for idle grid

KNN India· 18 Oct 2026
Read original →
Different Perspectives
Nexus Core Systems
Nexus Core Systems
Hired FiveNines Group, in a deal announced on 8 October, for early design, feasibility and permit work on a 20 MW AI data centre near Casablanca. It is the first named site of a planned 180 MW programme, still at concept design.
MC Digital Realty
MC Digital Realty
Began building the 24 MW KIX15 data centre in Osaka Prefecture on 7 October, due to open in the fourth quarter of 2028. The joint venture of Digital Realty and Mitsubishi Corporation says it will then run 10 data centres in Japan with about 220 MW of IT capacity.
KT Cloud
KT Cloud
Said on 7 October that it and Hyundai Engineering will build a 50 MW AI data centre at Cheongna, Incheon, from the fourth quarter of 2026. Completion is due in the first quarter of 2030, part of KT Cloud's target of more than 1 GW of AI capacity by 2031.
Town of Trebbin
Town of Trebbin
Said on 7 October that work has begun on two data-centre buildings and a substation under building permits already granted. The operating permit under the Federal Immission Control Act is still with Brandenburg's environment agency, so the town postponed its public presentation.
Óscar López, Digital Transformation minister
Óscar López, Digital Transformation minister
Said in Madrid on 8 October that he hopes to approve the data-centre royal decree shortly, with urgent processing to reach the cabinet before the 29 November election. He said the final text will take the more than 600 submissions into account, without saying what changes.
Hydro-Québec
Hydro-Québec
Defended its proposed Tarif CD before the Régie de l'énergie du Québec from 1 to 9 October, a rate for data centres of 5 MW or more that adds a premium when peak demand stays below 60% of forecast. Industrial consumers filed their own wording for the clause on who the rate covers.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.