New Delhi (Economy India): The Indian government expects investments in the country’s data centre sector to exceed $200 billion, with nuclear energy playing a crucial role in powering this rapidly expanding digital infrastructure, Union Minister for Electronics and Information Technology Ashwini Vaishnaw said on Sunday.
Speaking about India’s digital growth roadmap, the minister highlighted the strategic importance of data centres in supporting the country’s ambitions in artificial intelligence, cloud computing, fintech, e-governance and digital public infrastructure.
“We expect investment in the data centre sector to cross $200 billion. Nuclear energy will be a key component in providing reliable and sustainable power to this ecosystem,” Vaishnaw said.
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Nuclear Energy to Support Power-Intensive Digital Infrastructure
Vaishnaw noted that data centres are highly power-intensive, requiring uninterrupted, clean and scalable energy sources. In this context, nuclear power is expected to complement renewable energy in ensuring long-term energy security for India’s digital economy.
Industry experts say India’s push towards clean baseload energy, combined with policy support for digital infrastructure, could make the country a global hub for hyperscale data centres.
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Data Centres Central to India’s Digital Growth Vision
India’s data centre capacity has been expanding rapidly, driven by:
Growing internet and smartphone penetration
Rising demand for cloud services
Expansion of AI and data-driven technologies
Data localisation requirements
The government has been actively promoting investments in data centres through policy incentives, infrastructure status, and ease-of-doing-business reforms, attracting global technology firms and domestic players alike.
Strengthening India’s Digital Sovereignty
Vaishnaw emphasised that robust data centre infrastructure is essential for data security, digital sovereignty and economic growth.
With sustained policy support and energy availability, India is positioning itself as a preferred destination for large-scale data centre investments in the coming decade.
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