Data Centre

Data centre policies in India have so far focused mainly on providing incentives and exemptions to encourage and attract investment. 

The Draft Data Centre Policy 2020 outlines strategies for growth of data centres in the country. The policy suggests according “infrastructure status” to data centres at par with other sectors such as railways and roadways.  

Several states have announced their own data centre policies to incentivise investment in data centres. These policies largely provide fiscal incentives and subsidies, along with exemptions from certain specific liabilities (such as stamp duty). In certain cases, they also provide exemptions from select state legislations such as exemptions from the state’s pollution control legislation (Telangana), and exemptions from certain state specific labour legislations (Uttar Pradesh). 

TRAI in its Recommendations on Regulatory Framework for Promoting Data Economy through Establishment of Data Centres, Content Delivery Networks, and Interconnect Exchanges in India has issued recommendations to streamline data centre policies in the country. The recommendations also address operational burdens of running data centres by suggesting the creation a National Single Window System (NSWS) for time-bound clearances.  

Subsequently, in October 2022 the Department of Economic Affairs, Ministry of Finance via a notification, designated data centres as infrastructure under the category of ‘Communication’, effectively accepting TRAI’s recommendation on the issue.