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Data Centre
Evaluation Framework
to Help States Plan for
Sustainable Growth
NITI
Frontier
Tech Hub
Disclaimer
This framework has been prepared by NITI Frontier Tech Hub (FTH) in consultation with
experts and stakeholders. The data used is from secondary sources. Any references to specific
organisations, products, services or technologies does not constitute endorsement but are only
for illustrative purposes.
Data Centre Evaluation
Framework to Help States Plan
for Sustainable Growth
Acknowledgement
We express our sincere gratitude to Shri S. Krishnan, Secretary, Ministry of
Electronics and Information Technology, Shri Pankaj Agarwal, Ministry of
Power, Shri Amardeep Singh Bhatia, Secretary, Department for Promotion of
Industry and Internal Trade, Ministry of Commerce and the Green Transition,
Energy, Climate, and Environment Division of NITI Aayog for their valuable
contributions. Their guidance has been instrumental in ensuring that the
framework remains both aspirational in its vision and firmly grounded in
present realities.
Contributors
Ms. Debjani Ghosh, Distinguished Fellow, NITI Aayog
Mr. Anjani Kumar S, Partner, Deloitte India
Mr. Ayush Rungta, Partner, Deloitte India
Lt. Col. Rahul Kher, OSD, NITI Aayog
Mr. Raghuvaryan, Young Professional, NITI Aayog
Purpose
India’s growing data-centre sector presents an opportunity to attract investment, strengthen
the nation’s growing AI economy and build domestic technological capabilities. However, data-
centre projects also have significant requirements for electricity, water, land and supporting
infrastructure. States need a structured approach to assess these requirements alongside the
economic benefits of proposed investments.
The Data Centre Evaluation Framework to Help States Plan for Sustainable Growth, developed
by the NITI-Frontier Tech Hub, provides States with a common set of parameters to evaluate
data-centre proposals and make informed decisions that balance investment promotion,
infrastructure readiness, economic value and long-term sustainability.
What does the Framework assess?
How can States use the Framework?
States can use the framework to ask the right questions for assessing the proposals at the
planning and evaluation stage, identify infrastructure and resource constraints early, compare
projects on a consistent basis, and determine the support and enabling measures required
for implementation. It can also help States link incentives and other support to measurable
outcomes, including domestic industry participation, skills, innovation and sustainable
resource use.
The framework is intended to support decision-making, not prescribe a uniform approach or
create an additional layer of regulation. States can apply the common assessment principles
in line with their priorities, resource availability and development objectives.
The framework aims to help States move beyond competition for investment announcements
towards competition based on investment readiness, infrastructure quality and sustainable
economic value. It seeks to facilitate timely and predictable project implementation while
ensuring that data-centre growth contributes to long-term economic development and public
interest.
International Experience
Virginia, Dublin, Amsterdam, Johor and Bangkok show the risks when capacity outruns grid, water, land and
community systems. Ireland links new projects to additional generation. Singapore and European frameworks
use phased, climate-sensitive PUE and WUE assurance. Thailand and Malaysia have tightened incentive
screening for resource efficiency and domestic value.
India needs a framework that converts rapid investment into sustainable capacity by aligning every project
with infrastructure readiness, responsible siting and measurable public value
Implication
Establish the guideline framework before constraints emerge, and enable faster approvals only where
resource readiness, local safeguards and public value are evidenced.
1. Plan Before Approval
Assess the full campus at node
and corridor level. Treat large data
centres as grid-interactive loads
capable of demand response;
phase grid, water, fibre and land
capacity with augmentation and
commissioning milestones
2. Protect Local Systems
Test basin stress, existing users,
climate and community impacts,
backup sources and lifecycle
liabilities before construction
3. Secure Public Value
Compare fiscal and ecosystem
benefits with total State support.
Pay against controllable KPIs,
with monitoring and suspension
triggers
4. Enforce Delivery
Separate State and Central
roles, assign each condition
to the responsible entity, and
track clearances, resource use,
mitigation and disclosure
How the Framework Helps India
Why the Framework is Essential for Sustainable Data-Centre Growth
Definitions
Central Government Role
Provide National
standards, model
guidance and common
templates that support
consistent State evaluation
and coordination across
States and regulators
State Role
Actions to be undertaken by State departments, utilities and authorities
to coordinate infrastructure and approvals, support data centre
operators, set conditions and monitor delivery
State Evaluation Framework
Criteria used by the State to assess a proposal across the five pillars and
determine the conditions for approval
Recommended Minimum Approval Documents
Core records the State should obtain before approval to confirm resource
readiness, safeguards, responsibilities and measurable commitments
Pillars
Central
Government role
State Role and Evaluation Framework
Pillar 1
Power and
Energy
Assess grid
readiness
for the full
campus,
including
augmentation
and firm
supply at
each capacity
milestone.
State Evaluation Framework
(1) Assess total electricity demand
♦At site selection, require the developer, DISCOM and STU to jointly
validate a Power Readiness and Ramp-up Plan covering total
campus demand, built capacity, expected utilisation, sanctioned
MW, year-wise energisation, substation and transmission
augmentation, lead times and responsibility for each upgrade
♦Obtain DISCOM and STU load-flow studies for total planned
load, covering applicable 33 kV/11 kV feeder limits, voltage sag
and power factor, and N-1/N-2 contingency, thermal headroom
and transformer loading at relevant 132 kV/220 kV/400 kV
substations
♦Classify the proposed facility as conventional colocation, AI/
HPC/GPU compute or hybrid, and assess its power, cooling and
infrastructure requirements against the relevant facility type
♦Record firm MW, connection point, sanction stage; align each
capacity milestone with confirmed substation and transmission
lead times
♦Assess cumulative existing and committed load at the node
and corridor, map long-term transmission constraints and
augmentation lead times, and verify extra-high-tension
resilience and independent upstream sources for dual feeds
♦For facilities above 20 MW, require automated demand-
response readiness and SLDC telemetry and control integration,
subject to applicable grid-code requirements
(2) Specify augmentation, delivery milestones and cost allocation
♦Identify substation, feeder, transmission and protection
upgrades before each capacity addition.
♦Use a network-reinforcement study to separate data-centre-
driven upgrades from normal demand growth and allocate
shared upstream costs by beneficiary, contracted load and
utilisation; project-exclusive assets may be applicant-funded
♦Approve load enhancement only after the assets are
commissioned and agreed technical and payment milestones
are met
♦Publish the power-infrastructure roadmap and indicative
energisation timelines for each data centre site or corridor to
support developer capacity planning
(3) Calculate net grid draw
♦Issue common
load-flow and
grid-augmentation
templates;
♦MoP and CERC
should develop
and publish model
green-tariff,
banking and open-
access principles
for round-the-
clock renewable
and storage-
backed supply,
for adoption
by SERCs, to
provide longer-
term visibility on
green-energy
procurement
mechanisms
♦BEE, BIS and MeitY
should standardise
PUE, WUE and
CUE measurement
boundaries,
reporting and
verification.
These should
be aligned with
applicable Indian
Standards which
BIS (or any other
regulatory body)
has published;
BEE should assess
a Designated
Consumer
pathway for
eligible data
centres
♦Recognise renewable and storage-backed reductions only
where hourly or applicable time-block matching, approvals,
contracted quantum, commissioning, connectivity, metering
and usable discharge capacity are confirmed; record net grid
draw by milestone
♦Recognize storage-backed reductions only for usable capacity
over the discharge period, and record approved grid draw per
milestone.
(4) Set and monitor efficiency and resilience requirements
♦Require modelled design PUE, guaranteed operating PUE
and the assumptions for climate, rack density, cooling, UPS,
backup configuration
Pillar 1
Power and
Energy
Assess grid
readiness
for the full
campus,
including
augmentation
and firm
supply at
each capacity
milestone.
♦Require a phased roadmap to reduce diesel reliance through
BESS, green hydrogen or sustainable biofuels where technically
feasible, while maintaining required redundancy
♦For hyperscale or large compute facilities, require a waste-heat
utilization assessment and record technically and commercially
viable uses
♦Report operating PUE and CUE and site-level GHG emissions
from electricity use, backup generation, refrigerants and other
material operational sources
(5) Access to Advanced Power Technologies
♦Evaluate adoption of BESS, microgrids and alternative
backup power technologies to improve resilience and reduce
dependence on diesel generation
State Role
♦State and Central resource-adequacy assessments should
include approved and committed data-centre loads and treat
firm captive, open-access and backup arrangements, counting
only capacity available to the system
♦Encourage firm captive or open-access renewable-plus-storage
supply to reduce DISCOM draw; where applicable prescribe
a minimum renewable-energy share and encourage hybrid
models (solar + grid)
Recommended Minimum Approval Documents
♦Jointly validated Power Readiness and Ramp-up Plan covering
total campus demand, built capacity, expected utilisation,
sanctioned MW, year-wise energisation, required augmentation,
lead times, responsible entity, funding and cost-allocation basis
♦Phase-wise total load and net grid draw, including the basis for
each deduction
♦Required grid augmentation, responsible entity, funding and
cost-allocation basis, and delivery milestone
♦Renewable and storage arrangements contracted or approved
and deliverable by the relevant capacity milestone, with a metering
and monitoring plan
Pillars
Central
Government role
State Role and Evaluation Framework
Pillar 2
Water and
Cooling
Assess fit-for-
use demand
against
long-term
surface-water,
groundwater
and treated-
water
availability,
while
protecting
priority and
existing users.
State Evaluation Framework
(6) Assess long-term water availability and allocation
♦Apply applicable State allocation priorities and inter-State river
rules across drinking water, irrigation, hydropower, ecology,
agriculture/industry and navigation
♦Before approval, require an MSP agreement among Water
Resources (surface/groundwater), ULB/urban (treated
wastewater), drinking-water, irrigation/agriculture and industry
authorities, recording allocation, protected users, NOC validity,
drought rules and infrastructure responsibility
(7) Define fit-for-use water and calculate net freshwater demand
♦Specify fit-for-use water quality and quantity separately for
facility-level and rack-level cooling, distinguishing air cooling,
water cooling, rear-door heat exchangers, direct liquid cooling
and immersion cooling where applicable; model peak-summer
demand and WUE at local conditions, including approximately
40°C where applicable
♦At each commissioning milestone, assess peak water demand,
contracted supply, availability of grey water and other
alternative or recycled sources, on-site storage, contingency
arrangements and whether each source will be available when
the relevant capacity is commissioned
♦Report source type and distance, conveyance, treatment,
storage and commissioning infrastructure; assess liquid and
other low-water, low-energy cooling options against climate,
rack density, PUE and WUE
♦Deduct recycled, treated or other non-potable supply only
when contracted, connected and available from commissioning
(8) Protect existing users and provide for shortages
♦In high-stress locations, require independent source validation,
certified meters and periodic reporting and also require
rainwater harvesting, on-site treatment, and storage capacity
♦Where basin stress precludes additional freshwater abstraction,
require desalinated water where feasible; do not allow the
project to further strain existing freshwater resources
(9) Access to cooling technologies
♦Evaluate usage of innovative technologies (air-cooled, indirect
evaporative, liquid, closed-loop, immersion) which can improve
the efficiency and sustainability of data centre from water
consumption and cooling technologies
♦Issue cooling
guidance by
climate, water
source, cooling
system, rack
density and
facility type, with
source-wise WUE
reporting
♦Define common
measurement
boundaries for
cooling water and
source-wise WUE
reporting
State Role
♦Prepare a 20-30 year seasonal catchment water balance
covering surface water, groundwater, municipal supply, treated
wastewater, competing demand, particularly agriculture
♦Surface-water, groundwater or municipal-water allocation
should not reduce dependable supply for existing users
Recommended minimum approval documents
♦Basin-stress and public-supply impact assessment, with peak-
condition WUE
♦Phase-wise water-supply plan covering peak demand,
contracted supply, grey water and other alternative or recycled
sources, on-site storage, contingency arrangements and source
availability at each commissioning milestone, together with
metering and reporting arrangements
Pillars
Central
Government role
State Role and Evaluation Framework
Pillar 3
Siting and
Environmental
Sustainability
Prepare
sites before
approval
and assess
climate and
community
impacts.
State Evaluation Framework
(10) Assess site and community risk before construction
♦Assess forward-looking coastal, flood, cyclone, seismic, heat
and ecological risk, not only current hazard maps
♦Require a Community Impact Assessment covering water,
traffic, roads, drainage, emissions, noise, waste, emergency
access, land-use change and local jobs, with consultation and
grievance processes
♦For large campuses, States may consider a proportionate
Community Benefit Plan covering local training, grievance
redress and other local measures
(11) Provide for waste and decommissioning liabilities
♦Require a lifecycle plan for e-waste, batteries, hazardous
waste, diesel systems, IT-asset disposition, recycling, building
decommissioning
♦Introduce financial assurance only after a sector-specific
assessment of decommissioning risks and costs
State Role
Designate and Prepare Data-Centre-Ready Zones
♦Verify land title, permitted use, zoning, expansion headroom.
Pre-assess grid, water, substation readiness and, among
otherwise suitable sites, prioritise renewable-energy-rich zones
with available connectivity where this limits long-distance
transmission
♦Assess access to multiple fibre providers, carrier-neutral
interconnection and physically diverse routes; where relevant,
assess cable-landing-station proximity, backhaul readiness
and opportunities to extend high-capacity connectivity to
underserved regions
♦Publish corridor-level grid, transmission, renewable-access,
water, fibre, right-of-way, land and clearance readiness, with
nodal contacts
♦Publish approval timelines and cost-sharing rules. Issue interim
building, fire and electrical guidance until BIS standards apply
♦Alongside data-centre-ready zones, mark-out the exclusion
or high-risk zones (Red zone) where development should be
restricted because of hazard exposure, water stress, land-use
conflicts or inadequate supporting infrastructure
♦Issue model Data
Centre Economic
Zone and BIS
standards, with
lifecycle and
decommissioning
guidance
Recommended Minimum Approval Documents
♦Site-readiness record covering 10-15 year expansion headroom
for land use, grid, water, fiber, right-of-way and applicable
clearance status
♦Climate-risk assessment and, for large campuses where
warranted, a proportionate Community Impact Assessment
♦Identified readiness gaps, responsible entity and completion
date, together with a lifecycle and decommissioning plan
Pillars
Central
Government role
State Role and Evaluation Framework
Pillar 4
Economic
and
Strategic
Value
Assess value
net of State
support and
pay only for
measurable
outcomes.
State Evaluation Framework
(12) Classify the business model and responsible entities
♦Distinguish passive infrastructure models, including colocation,
built-to-suit and powered shell, from active models such as
cloud, Compute as a Service, GPU as a Service and managed
hosting and compare across similar archetypes
(13) Measure net economic contribution
♦Review net fiscal contribution over a defined period. Separately
quantify land, infrastructure, electricity-duty, stamp-duty, utility
and capital support being provided
♦Assess local procurement, downstream demand in digital
consumption, job skilling, local hiring – direct/indirect, training
and capability development and R&D
♦Assess domestic procurement percentage across both IT and
non-IT infrastructure
State Role
Link incentives to measurable outcomes within the recipient’s
control
♦Disburse against defined commissioning, renewable supply,
PUE or WUE, employment, procurement and capability
milestones. Specify the KPI, method, reporting frequency,
suspension trigger
♦For compute projects, recognise research, skilling and
certification. For colocation, recognise anchor tenants, civil and
MEP vendor development and local operations capability
♦Encourage domestic procurement and indigenous technology
development across servers, HPC/AI, software ecosystem, and
support “Make in India” IT and non-IT infrastructure
Recommended Minimum Approval Documents
♦Net contribution and quantified State support
♦Data-centre model, incentive recipient and entity controlling
each committed outcome
♦KPI, incentive tranche, reporting frequency, suspension trigger
♦Publish Net
Economic
Contribution and
performance-linked
incentive templates
Pillars
Central
Government role
State Role and Evaluation Framework
Pillar 5
Policy,
Governance
and
Implementation
Assign
conditions to
responsible
entities and
track delivery.
State Evaluation Framework
(14) Assign each condition to the responsible entity
♦Map the facility and IT owner, workload controller, customer
counterparty, Data Fiduciary or Processor, regulated entity,
compute controller and incentive recipient
(15) Assess cross-pillar innovative technologies and performance
standards
♦Assess and encourage adoption of innovative technologies
across all pillars where proposals quantify improvements
in power, water, connectivity, environmental, economic
or governance outcomes; assign delivery and verification
responsibility
♦Assess design-stage PUE, WUE and CUE against applicable
published BIS standards and require post-commissioning
measurement and reporting using the same boundaries
State Role
Run a time-bound end-to-end digital single-window mechanism
♦Publish a State-wise Data Centre Approval Matrix covering each
applicable approval or NOC, issuing authority, applicability,
indicative processing time, dependencies, required documents,
applicable fees and escalation mechanism
♦Link the Approval Matrix to one digital interface for coordinated
submission, processing and tracking of clearances; identify
each responsible department, processing time, dependency
and escalation officer, including the authorities responsible
for surface water, groundwater, municipal supply and treated
wastewater
♦For each incentive, cite the enabling notification, validity,
responsible department and disbursement mechanism. Track
status on the dashboard
♦Each State may designate a single point approving authority/
agency/nodal agency (including MeitY) to coordinate the data
centre establishment approvals in the State
Track approved conditions and publish non-sensitive
information
♦For government or regulated workloads, assess certifications,
contracts, physical security, incident response and audit support
♦Track approved load, water, safeguards, mitigation, incentive
milestones and the grievance channel
♦Maintain the
national legal-
responsibility
matrix and
compliance
templates
♦Provide a model
State notification
or Central
advisory for ESMA
or equivalent
continuity
treatment. Cover
24x7 operations,
priority utilities,
emergency access
♦Establish
centralised Audit
mechanism (with
MeitY as the
nodal ministry) to
periodically audit /
inspect the claims
of the data centres
establishments
and to oversee if
the data centre is
functioning as per
the Government
of India rules /
regulations /
guideline
♦Publish non-sensitive approval data. Withhold customer,
security, network, resilience and proprietary operating
information
♦Assess and track disaster-recovery and business-continuity
arrangements, including seismic risk, power and network
redundancy, recovery objectives and emergency operating
procedures
Recommended Minimum Approval Document
♦Designed PUE, WUE, CUE planned documents
Pillars
Central
Government role
State Role and Evaluation Framework
Taken together, the five pillars provide States with a common basis to assess data-centre
proposals from initial site selection through commissioning and ongoing operations. The
framework links approvals to verified readiness of power, water, land and supporting
infrastructure; safeguards existing users and local communities; assesses State support
against measurable economic and strategic outcomes; and assigns each condition to
the entity responsible for delivery. Common standards, templates and guidance from the
Central Government can support consistent implementation across States, while milestone-
based monitoring can link capacity additions, incentives and resource commitments to the
fulfilment of agreed obligations. The framework therefore serves as a practical guide for
enabling data-centre growth while protecting local systems, securing measurable public
value and maintaining clear accountability throughout the project lifecycle.
NOTES
NITI
Frontier
Tech Hub
Evaluation Framework
to Help States Plan for
Sustainable Growth
NITI
Frontier
Tech Hub
Disclaimer
This framework has been prepared by NITI Frontier Tech Hub (FTH) in consultation with
experts and stakeholders. The data used is from secondary sources. Any references to specific
organisations, products, services or technologies does not constitute endorsement but are only
for illustrative purposes.
Data Centre Evaluation
Framework to Help States Plan
for Sustainable Growth
Acknowledgement
We express our sincere gratitude to Shri S. Krishnan, Secretary, Ministry of
Electronics and Information Technology, Shri Pankaj Agarwal, Ministry of
Power, Shri Amardeep Singh Bhatia, Secretary, Department for Promotion of
Industry and Internal Trade, Ministry of Commerce and the Green Transition,
Energy, Climate, and Environment Division of NITI Aayog for their valuable
contributions. Their guidance has been instrumental in ensuring that the
framework remains both aspirational in its vision and firmly grounded in
present realities.
Contributors
Ms. Debjani Ghosh, Distinguished Fellow, NITI Aayog
Mr. Anjani Kumar S, Partner, Deloitte India
Mr. Ayush Rungta, Partner, Deloitte India
Lt. Col. Rahul Kher, OSD, NITI Aayog
Mr. Raghuvaryan, Young Professional, NITI Aayog
Purpose
India’s growing data-centre sector presents an opportunity to attract investment, strengthen
the nation’s growing AI economy and build domestic technological capabilities. However, data-
centre projects also have significant requirements for electricity, water, land and supporting
infrastructure. States need a structured approach to assess these requirements alongside the
economic benefits of proposed investments.
The Data Centre Evaluation Framework to Help States Plan for Sustainable Growth, developed
by the NITI-Frontier Tech Hub, provides States with a common set of parameters to evaluate
data-centre proposals and make informed decisions that balance investment promotion,
infrastructure readiness, economic value and long-term sustainability.
What does the Framework assess?
How can States use the Framework?
States can use the framework to ask the right questions for assessing the proposals at the
planning and evaluation stage, identify infrastructure and resource constraints early, compare
projects on a consistent basis, and determine the support and enabling measures required
for implementation. It can also help States link incentives and other support to measurable
outcomes, including domestic industry participation, skills, innovation and sustainable
resource use.
The framework is intended to support decision-making, not prescribe a uniform approach or
create an additional layer of regulation. States can apply the common assessment principles
in line with their priorities, resource availability and development objectives.
The framework aims to help States move beyond competition for investment announcements
towards competition based on investment readiness, infrastructure quality and sustainable
economic value. It seeks to facilitate timely and predictable project implementation while
ensuring that data-centre growth contributes to long-term economic development and public
interest.
International Experience
Virginia, Dublin, Amsterdam, Johor and Bangkok show the risks when capacity outruns grid, water, land and
community systems. Ireland links new projects to additional generation. Singapore and European frameworks
use phased, climate-sensitive PUE and WUE assurance. Thailand and Malaysia have tightened incentive
screening for resource efficiency and domestic value.
India needs a framework that converts rapid investment into sustainable capacity by aligning every project
with infrastructure readiness, responsible siting and measurable public value
Implication
Establish the guideline framework before constraints emerge, and enable faster approvals only where
resource readiness, local safeguards and public value are evidenced.
1. Plan Before Approval
Assess the full campus at node
and corridor level. Treat large data
centres as grid-interactive loads
capable of demand response;
phase grid, water, fibre and land
capacity with augmentation and
commissioning milestones
2. Protect Local Systems
Test basin stress, existing users,
climate and community impacts,
backup sources and lifecycle
liabilities before construction
3. Secure Public Value
Compare fiscal and ecosystem
benefits with total State support.
Pay against controllable KPIs,
with monitoring and suspension
triggers
4. Enforce Delivery
Separate State and Central
roles, assign each condition
to the responsible entity, and
track clearances, resource use,
mitigation and disclosure
How the Framework Helps India
Why the Framework is Essential for Sustainable Data-Centre Growth
Definitions
Central Government Role
Provide National
standards, model
guidance and common
templates that support
consistent State evaluation
and coordination across
States and regulators
State Role
Actions to be undertaken by State departments, utilities and authorities
to coordinate infrastructure and approvals, support data centre
operators, set conditions and monitor delivery
State Evaluation Framework
Criteria used by the State to assess a proposal across the five pillars and
determine the conditions for approval
Recommended Minimum Approval Documents
Core records the State should obtain before approval to confirm resource
readiness, safeguards, responsibilities and measurable commitments
Pillars
Central
Government role
State Role and Evaluation Framework
Pillar 1
Power and
Energy
Assess grid
readiness
for the full
campus,
including
augmentation
and firm
supply at
each capacity
milestone.
State Evaluation Framework
(1) Assess total electricity demand
♦At site selection, require the developer, DISCOM and STU to jointly
validate a Power Readiness and Ramp-up Plan covering total
campus demand, built capacity, expected utilisation, sanctioned
MW, year-wise energisation, substation and transmission
augmentation, lead times and responsibility for each upgrade
♦Obtain DISCOM and STU load-flow studies for total planned
load, covering applicable 33 kV/11 kV feeder limits, voltage sag
and power factor, and N-1/N-2 contingency, thermal headroom
and transformer loading at relevant 132 kV/220 kV/400 kV
substations
♦Classify the proposed facility as conventional colocation, AI/
HPC/GPU compute or hybrid, and assess its power, cooling and
infrastructure requirements against the relevant facility type
♦Record firm MW, connection point, sanction stage; align each
capacity milestone with confirmed substation and transmission
lead times
♦Assess cumulative existing and committed load at the node
and corridor, map long-term transmission constraints and
augmentation lead times, and verify extra-high-tension
resilience and independent upstream sources for dual feeds
♦For facilities above 20 MW, require automated demand-
response readiness and SLDC telemetry and control integration,
subject to applicable grid-code requirements
(2) Specify augmentation, delivery milestones and cost allocation
♦Identify substation, feeder, transmission and protection
upgrades before each capacity addition.
♦Use a network-reinforcement study to separate data-centre-
driven upgrades from normal demand growth and allocate
shared upstream costs by beneficiary, contracted load and
utilisation; project-exclusive assets may be applicant-funded
♦Approve load enhancement only after the assets are
commissioned and agreed technical and payment milestones
are met
♦Publish the power-infrastructure roadmap and indicative
energisation timelines for each data centre site or corridor to
support developer capacity planning
(3) Calculate net grid draw
♦Issue common
load-flow and
grid-augmentation
templates;
♦MoP and CERC
should develop
and publish model
green-tariff,
banking and open-
access principles
for round-the-
clock renewable
and storage-
backed supply,
for adoption
by SERCs, to
provide longer-
term visibility on
green-energy
procurement
mechanisms
♦BEE, BIS and MeitY
should standardise
PUE, WUE and
CUE measurement
boundaries,
reporting and
verification.
These should
be aligned with
applicable Indian
Standards which
BIS (or any other
regulatory body)
has published;
BEE should assess
a Designated
Consumer
pathway for
eligible data
centres
♦Recognise renewable and storage-backed reductions only
where hourly or applicable time-block matching, approvals,
contracted quantum, commissioning, connectivity, metering
and usable discharge capacity are confirmed; record net grid
draw by milestone
♦Recognize storage-backed reductions only for usable capacity
over the discharge period, and record approved grid draw per
milestone.
(4) Set and monitor efficiency and resilience requirements
♦Require modelled design PUE, guaranteed operating PUE
and the assumptions for climate, rack density, cooling, UPS,
backup configuration
Pillar 1
Power and
Energy
Assess grid
readiness
for the full
campus,
including
augmentation
and firm
supply at
each capacity
milestone.
♦Require a phased roadmap to reduce diesel reliance through
BESS, green hydrogen or sustainable biofuels where technically
feasible, while maintaining required redundancy
♦For hyperscale or large compute facilities, require a waste-heat
utilization assessment and record technically and commercially
viable uses
♦Report operating PUE and CUE and site-level GHG emissions
from electricity use, backup generation, refrigerants and other
material operational sources
(5) Access to Advanced Power Technologies
♦Evaluate adoption of BESS, microgrids and alternative
backup power technologies to improve resilience and reduce
dependence on diesel generation
State Role
♦State and Central resource-adequacy assessments should
include approved and committed data-centre loads and treat
firm captive, open-access and backup arrangements, counting
only capacity available to the system
♦Encourage firm captive or open-access renewable-plus-storage
supply to reduce DISCOM draw; where applicable prescribe
a minimum renewable-energy share and encourage hybrid
models (solar + grid)
Recommended Minimum Approval Documents
♦Jointly validated Power Readiness and Ramp-up Plan covering
total campus demand, built capacity, expected utilisation,
sanctioned MW, year-wise energisation, required augmentation,
lead times, responsible entity, funding and cost-allocation basis
♦Phase-wise total load and net grid draw, including the basis for
each deduction
♦Required grid augmentation, responsible entity, funding and
cost-allocation basis, and delivery milestone
♦Renewable and storage arrangements contracted or approved
and deliverable by the relevant capacity milestone, with a metering
and monitoring plan
Pillars
Central
Government role
State Role and Evaluation Framework
Pillar 2
Water and
Cooling
Assess fit-for-
use demand
against
long-term
surface-water,
groundwater
and treated-
water
availability,
while
protecting
priority and
existing users.
State Evaluation Framework
(6) Assess long-term water availability and allocation
♦Apply applicable State allocation priorities and inter-State river
rules across drinking water, irrigation, hydropower, ecology,
agriculture/industry and navigation
♦Before approval, require an MSP agreement among Water
Resources (surface/groundwater), ULB/urban (treated
wastewater), drinking-water, irrigation/agriculture and industry
authorities, recording allocation, protected users, NOC validity,
drought rules and infrastructure responsibility
(7) Define fit-for-use water and calculate net freshwater demand
♦Specify fit-for-use water quality and quantity separately for
facility-level and rack-level cooling, distinguishing air cooling,
water cooling, rear-door heat exchangers, direct liquid cooling
and immersion cooling where applicable; model peak-summer
demand and WUE at local conditions, including approximately
40°C where applicable
♦At each commissioning milestone, assess peak water demand,
contracted supply, availability of grey water and other
alternative or recycled sources, on-site storage, contingency
arrangements and whether each source will be available when
the relevant capacity is commissioned
♦Report source type and distance, conveyance, treatment,
storage and commissioning infrastructure; assess liquid and
other low-water, low-energy cooling options against climate,
rack density, PUE and WUE
♦Deduct recycled, treated or other non-potable supply only
when contracted, connected and available from commissioning
(8) Protect existing users and provide for shortages
♦In high-stress locations, require independent source validation,
certified meters and periodic reporting and also require
rainwater harvesting, on-site treatment, and storage capacity
♦Where basin stress precludes additional freshwater abstraction,
require desalinated water where feasible; do not allow the
project to further strain existing freshwater resources
(9) Access to cooling technologies
♦Evaluate usage of innovative technologies (air-cooled, indirect
evaporative, liquid, closed-loop, immersion) which can improve
the efficiency and sustainability of data centre from water
consumption and cooling technologies
♦Issue cooling
guidance by
climate, water
source, cooling
system, rack
density and
facility type, with
source-wise WUE
reporting
♦Define common
measurement
boundaries for
cooling water and
source-wise WUE
reporting
State Role
♦Prepare a 20-30 year seasonal catchment water balance
covering surface water, groundwater, municipal supply, treated
wastewater, competing demand, particularly agriculture
♦Surface-water, groundwater or municipal-water allocation
should not reduce dependable supply for existing users
Recommended minimum approval documents
♦Basin-stress and public-supply impact assessment, with peak-
condition WUE
♦Phase-wise water-supply plan covering peak demand,
contracted supply, grey water and other alternative or recycled
sources, on-site storage, contingency arrangements and source
availability at each commissioning milestone, together with
metering and reporting arrangements
Pillars
Central
Government role
State Role and Evaluation Framework
Pillar 3
Siting and
Environmental
Sustainability
Prepare
sites before
approval
and assess
climate and
community
impacts.
State Evaluation Framework
(10) Assess site and community risk before construction
♦Assess forward-looking coastal, flood, cyclone, seismic, heat
and ecological risk, not only current hazard maps
♦Require a Community Impact Assessment covering water,
traffic, roads, drainage, emissions, noise, waste, emergency
access, land-use change and local jobs, with consultation and
grievance processes
♦For large campuses, States may consider a proportionate
Community Benefit Plan covering local training, grievance
redress and other local measures
(11) Provide for waste and decommissioning liabilities
♦Require a lifecycle plan for e-waste, batteries, hazardous
waste, diesel systems, IT-asset disposition, recycling, building
decommissioning
♦Introduce financial assurance only after a sector-specific
assessment of decommissioning risks and costs
State Role
Designate and Prepare Data-Centre-Ready Zones
♦Verify land title, permitted use, zoning, expansion headroom.
Pre-assess grid, water, substation readiness and, among
otherwise suitable sites, prioritise renewable-energy-rich zones
with available connectivity where this limits long-distance
transmission
♦Assess access to multiple fibre providers, carrier-neutral
interconnection and physically diverse routes; where relevant,
assess cable-landing-station proximity, backhaul readiness
and opportunities to extend high-capacity connectivity to
underserved regions
♦Publish corridor-level grid, transmission, renewable-access,
water, fibre, right-of-way, land and clearance readiness, with
nodal contacts
♦Publish approval timelines and cost-sharing rules. Issue interim
building, fire and electrical guidance until BIS standards apply
♦Alongside data-centre-ready zones, mark-out the exclusion
or high-risk zones (Red zone) where development should be
restricted because of hazard exposure, water stress, land-use
conflicts or inadequate supporting infrastructure
♦Issue model Data
Centre Economic
Zone and BIS
standards, with
lifecycle and
decommissioning
guidance
Recommended Minimum Approval Documents
♦Site-readiness record covering 10-15 year expansion headroom
for land use, grid, water, fiber, right-of-way and applicable
clearance status
♦Climate-risk assessment and, for large campuses where
warranted, a proportionate Community Impact Assessment
♦Identified readiness gaps, responsible entity and completion
date, together with a lifecycle and decommissioning plan
Pillars
Central
Government role
State Role and Evaluation Framework
Pillar 4
Economic
and
Strategic
Value
Assess value
net of State
support and
pay only for
measurable
outcomes.
State Evaluation Framework
(12) Classify the business model and responsible entities
♦Distinguish passive infrastructure models, including colocation,
built-to-suit and powered shell, from active models such as
cloud, Compute as a Service, GPU as a Service and managed
hosting and compare across similar archetypes
(13) Measure net economic contribution
♦Review net fiscal contribution over a defined period. Separately
quantify land, infrastructure, electricity-duty, stamp-duty, utility
and capital support being provided
♦Assess local procurement, downstream demand in digital
consumption, job skilling, local hiring – direct/indirect, training
and capability development and R&D
♦Assess domestic procurement percentage across both IT and
non-IT infrastructure
State Role
Link incentives to measurable outcomes within the recipient’s
control
♦Disburse against defined commissioning, renewable supply,
PUE or WUE, employment, procurement and capability
milestones. Specify the KPI, method, reporting frequency,
suspension trigger
♦For compute projects, recognise research, skilling and
certification. For colocation, recognise anchor tenants, civil and
MEP vendor development and local operations capability
♦Encourage domestic procurement and indigenous technology
development across servers, HPC/AI, software ecosystem, and
support “Make in India” IT and non-IT infrastructure
Recommended Minimum Approval Documents
♦Net contribution and quantified State support
♦Data-centre model, incentive recipient and entity controlling
each committed outcome
♦KPI, incentive tranche, reporting frequency, suspension trigger
♦Publish Net
Economic
Contribution and
performance-linked
incentive templates
Pillars
Central
Government role
State Role and Evaluation Framework
Pillar 5
Policy,
Governance
and
Implementation
Assign
conditions to
responsible
entities and
track delivery.
State Evaluation Framework
(14) Assign each condition to the responsible entity
♦Map the facility and IT owner, workload controller, customer
counterparty, Data Fiduciary or Processor, regulated entity,
compute controller and incentive recipient
(15) Assess cross-pillar innovative technologies and performance
standards
♦Assess and encourage adoption of innovative technologies
across all pillars where proposals quantify improvements
in power, water, connectivity, environmental, economic
or governance outcomes; assign delivery and verification
responsibility
♦Assess design-stage PUE, WUE and CUE against applicable
published BIS standards and require post-commissioning
measurement and reporting using the same boundaries
State Role
Run a time-bound end-to-end digital single-window mechanism
♦Publish a State-wise Data Centre Approval Matrix covering each
applicable approval or NOC, issuing authority, applicability,
indicative processing time, dependencies, required documents,
applicable fees and escalation mechanism
♦Link the Approval Matrix to one digital interface for coordinated
submission, processing and tracking of clearances; identify
each responsible department, processing time, dependency
and escalation officer, including the authorities responsible
for surface water, groundwater, municipal supply and treated
wastewater
♦For each incentive, cite the enabling notification, validity,
responsible department and disbursement mechanism. Track
status on the dashboard
♦Each State may designate a single point approving authority/
agency/nodal agency (including MeitY) to coordinate the data
centre establishment approvals in the State
Track approved conditions and publish non-sensitive
information
♦For government or regulated workloads, assess certifications,
contracts, physical security, incident response and audit support
♦Track approved load, water, safeguards, mitigation, incentive
milestones and the grievance channel
♦Maintain the
national legal-
responsibility
matrix and
compliance
templates
♦Provide a model
State notification
or Central
advisory for ESMA
or equivalent
continuity
treatment. Cover
24x7 operations,
priority utilities,
emergency access
♦Establish
centralised Audit
mechanism (with
MeitY as the
nodal ministry) to
periodically audit /
inspect the claims
of the data centres
establishments
and to oversee if
the data centre is
functioning as per
the Government
of India rules /
regulations /
guideline
♦Publish non-sensitive approval data. Withhold customer,
security, network, resilience and proprietary operating
information
♦Assess and track disaster-recovery and business-continuity
arrangements, including seismic risk, power and network
redundancy, recovery objectives and emergency operating
procedures
Recommended Minimum Approval Document
♦Designed PUE, WUE, CUE planned documents
Pillars
Central
Government role
State Role and Evaluation Framework
Taken together, the five pillars provide States with a common basis to assess data-centre
proposals from initial site selection through commissioning and ongoing operations. The
framework links approvals to verified readiness of power, water, land and supporting
infrastructure; safeguards existing users and local communities; assesses State support
against measurable economic and strategic outcomes; and assigns each condition to
the entity responsible for delivery. Common standards, templates and guidance from the
Central Government can support consistent implementation across States, while milestone-
based monitoring can link capacity additions, incentives and resource commitments to the
fulfilment of agreed obligations. The framework therefore serves as a practical guide for
enabling data-centre growth while protecting local systems, securing measurable public
value and maintaining clear accountability throughout the project lifecycle.
NOTES
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