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NITI Aayog Unveils Data Centre Evaluation Framework for States

NITI Aayog's Frontier Tech Hub released the Data Centre Evaluation Framework, built on five pillars, to help States plan sustainable growth of data centres.

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Why in News

NITI Aayog's Frontier Tech Hub released the Data Centre Evaluation Framework on 14 October 2026, a five-pillar decision tool that helps State governments assess infrastructure readiness, protect power and water resources and draw lasting economic value from data-centre investment.

The Frontier Tech Hub of NITI Aayog has brought out the Data Centre Evaluation Framework, a planning tool for State governments weighing data-centre proposals. The document was released on 14 October 2026 and announced the next day. Its purpose is to move States from merely attracting data-centre money to becoming genuinely ready for it, so that power, water and land can carry such projects for years.

Who released it

The release took place in the presence of Prof. Abhay Karandikar, Member, NITI Aayog, Shri Anurag Jain, Chief Executive Officer, NITI Aayog, and Ms Debjani Ghosh, Distinguished Fellow, along with officials of the Ministry of Power, the Ministry of Electronics and Information Technology and the Department for Promotion of Industry and Internal Trade, besides industry representatives. Those same ministries and the industry gave inputs while the framework was being drafted.

How fast the sector has grown

India's data-centre capacity has climbed from roughly 375 MW in 2020 to about 1.5 GW today, pulled up by artificial intelligence, cloud computing, high-performance computing and applications that feed on data. The government has also allowed a tax holiday until 2047 for eligible foreign cloud service providers that use data-centre infrastructure based in India.

The five pillars

  • Power and Energy
  • Water and Cooling
  • Siting and Environmental Sustainability
  • Economic and Strategic Value
  • Policy, Governance and Implementation

What it asks States to check

On resources, the framework wants States to measure grid readiness and net grid draw, to favour renewable energy backed by storage, and to study water stress at the level of the river basin along with the effect on public supply. It also presses for rainwater harvesting, treatment and storage of water on site, and lifecycle plans for electronic waste, batteries and other hazardous waste.

Getting value from the investment

To raise economic returns, States are advised to mark out suitable data-centre zones, to separate colocation from active compute services, to tie State incentives to measurable results and to carry Make in India across both IT and non-IT equipment, with time-bound approvals and monitoring of promises made. Mr Jain said States must judge infrastructure, resource needs and economic benefit before they commit support, and that the framework does this without adding a fresh layer of regulation.

Important Facts

DocumentData Centre Evaluation Framework
Released byFrontier Tech Hub, NITI Aayog
Date of release14 October 2026
PillarsFive: Power and Energy; Water and Cooling; Siting and Environmental Sustainability; Economic and Strategic Value; Policy, Governance and Implementation
Capacity growthAbout 375 MW in 2020 to roughly 1.5 GW at present
Tax holidayUntil 2047 for eligible foreign cloud service providers using India-based data centres
NITI Aayog Member presentProf. Abhay Karandikar
NITI Aayog CEOShri Anurag Jain
Inputs fromMeitY, Ministry of Power, DPIIT and industry

Exam Point of View

Remember that the framework comes from NITI Aayog's Frontier Tech Hub, the five pillars in order, the capacity jump from about 375 MW in 2020 to roughly 1.5 GW now, the tax holiday until 2047 for eligible foreign cloud service providers, and the names present at the release, namely Member Abhay Karandikar, Chief Executive Officer Anurag Jain and Distinguished Fellow Debjani Ghosh.

Practice Questions

Q1.Reports & IndicesEasy

The Data Centre Evaluation Framework has been released by which body?

  1. A.Frontier Tech Hub of NITI Aayog
  2. B.Telecom Regulatory Authority of India
  3. C.Central Electricity Authority
  4. D.Bureau of Energy Efficiency
Show answer
Correct answer: A. Frontier Tech Hub of NITI Aayog

The document was drafted with inputs from industry, the Ministry of Electronics and Information Technology, the Ministry of Power and the Department for Promotion of Industry and Internal Trade.

Frequently Asked Questions

Who has released the Data Centre Evaluation Framework?

The Frontier Tech Hub of NITI Aayog released it on 14 October 2026, in the presence of NITI Aayog Member Abhay Karandikar, Chief Executive Officer Anurag Jain and Distinguished Fellow Debjani Ghosh.

What are the five pillars of the framework?

Power and Energy; Water and Cooling; Siting and Environmental Sustainability; Economic and Strategic Value; and Policy, Governance and Implementation.

How much has India's data-centre capacity grown?

From about 375 MW in 2020 to roughly 1.5 GW at present, driven by demand from artificial intelligence, cloud computing, high-performance computing and data-heavy digital applications.

Sources

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