Strong power infrastructure makes India preferred destination for data centres, says Piyush Goyal

India is emerging as a preferred global destination for data centres, supported by a strong and fully integrated national power grid and a significantly transformed energy sector, Union Commerce and Industry Minister Piyush Goyal said during a media interaction on Monday, according to an ANI report.

The minister stated that when Prime Minister Narendra Modi assumed office in 2014, the country’s power sector was in a fragile state, characterised by frequent outages, limited renewable energy capacity and inadequate infrastructure. Over the past 11 years, however, the sector has undergone a major transformation, ensuring reliable, affordable and round-the-clock electricity supply across the country, he informed.

Goyal highlighted that India now operates a single, integrated national power grid, one of the largest in the world, with a capacity of around 500 gigawatts. He said this robust grid is capable of managing redundancy and absorbing sudden surges in electricity demand, such as those created by large data centres, making India particularly well suited to host data centres and Global Capability Centres.

He added that the government has undertaken comprehensive planning to ensure sufficient power availability in the coming years to meet the needs of households, farmers, industry and commercial establishments, including the rapidly expanding digital infrastructure ecosystem. Goyal said India’s massive grid allows it to handle the high and fluctuating power requirements of data centres more effectively than many other countries.

Referring to reforms in the energy sector, the minister stated that renewable energy capacity has expanded sharply since 2014. Solar power capacity has increased nearly 46 times, while wind energy capacity has grown about 2.5 times. He also noted that petroleum refining capacity has expanded and natural gas connectivity has reached consumers at the last mile.

Goyal further said that India has steadily reduced its dependence on coal imports, helping conserve foreign exchange reserves. Measures such as rationalisation of coal linkages and streamlining of coal supply chains have improved efficiency and helped keep power tariffs under control, benefiting consumers, he stated.

The minister also spoke about the SHANTI Bill, which is currently before Parliament. He said the proposed legislation is aimed at providing a major boost to nuclear energy development in the country by encouraging participation from both public and private players, including through public-private partnerships, and promoting the large-scale deployment of small modular reactors.

According to Goyal, nuclear energy will play a crucial role in ensuring round-the-clock availability of clean and reliable power, particularly for energy-intensive sectors such as data centres. He stated that a combination of solar, wind and nuclear power would help meet India’s growing electricity demand while increasing the share of clean energy in the overall power mix.

Goyal also highlighted that the government has ensured electricity access to millions of previously unconnected households through the SAUBHAGYA scheme. He said the transformation of India’s power sector rests on five key pillars: universal access, affordability, availability, financial viability and sustainability with global responsibility.