NITI Aayog’s Frontier Tech Hub releases ‘Data Centre Evaluation Framework’

Why in News?

NITI Aayog’s Frontier Tech Hub released the Data Centre Evaluation Framework on October 14, 2026, to help State governments plan, evaluate and facilitate data-centre investments while ensuring sustainable growth.

About the Data Centre Evaluation Framework

The framework provides State governments with a practical approach to assess infrastructure readiness, safeguard critical resources and maximise the long-term economic and strategic value of data-centre investments.

Five Pillars of the Framework

1. Power and Energy: Assessing power availability and energy requirements for data centres.
2. Water and Cooling: Evaluating water availability and cooling requirements.
3. Siting and Environmental Sustainability: Identifying suitable locations while considering environmental sustainability.
4. Economic and Strategic Value: Assessing the long-term economic benefits and strategic importance of investments.
5. Policy, Governance and Implementation: Strengthening policy support, governance mechanisms and implementation capacity.

Growth of Data Centres in India

• Capacity expansion: India’s data-centre capacity has increased from approximately 375 MW in 2020 to around 1.5 GW currently.
• Key drivers: Growing demand for artificial intelligence (AI), cloud computing, high-performance computing and data-intensive digital applications.
• Government support: The Government of India has introduced measures to encourage investment, including a tax holiday until 2047 for eligible foreign cloud service providers using India-based data-centre infrastructure.
• Need for State-level planning: As investments increase, States need to ensure adequate infrastructure, resource availability and investment readiness for sustainable sectoral growth.

About NITI Aayog’s Frontier Tech Hub

The Frontier Tech Hub has been established to anticipate major technological shifts and assess India’s readiness to harness their potential. Its objectives include promoting inclusive growth, strengthening supply-chain resilience and enhancing national security.

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