Data centre industry presses government for power and regulatory reforms in roundtable

Key demands from the industry

According to YourStory, stakeholders at the roundtable highlighted the need for adequate and reliable power supply, including cluster-based transmission planning and pre-approved substations. They also sought Day-1 sanctioned load—where power capacity is allocated upfront—along with dual power feeders to ensure redundancy.

The industry called for pre-identified land banks and power-ready parcels to streamline project deployment. Cross-state procurement of renewable energy was another focus, aimed at reducing dependency on local grids and improving sustainability.

Regulatory and approval reforms

The Ministry of Commerce and Industry reported that participants reviewed regulatory measures to shorten project timelines and improve investment certainty. Key proposals included single-window approvals for permits and building regulations tailored to data centres.

Ease of Doing Business emerged as a priority, with discussions centring on cutting delays in land allocation, power connections, and regulatory compliance.

Market drivers and investment outlook

YourStory noted that demand for data centres is surging due to cloud and AI workloads. Hyperscalers accounted for more than 80% of data centre absorption in the first half of 2026, reflecting India’s growing role as an AI infrastructure hub.

The government expects investments in the sector to reach USD 200 billion, driven by India’s expanding digital economy and AI ecosystem. This presents opportunities for developers, operators, and ancillary service providers.

State and industry participation

The roundtable saw participation from senior officials of eight state governments, including Andhra Pradesh, Maharashtra, Tamil Nadu, and Telangana. Around 46 data centre companies were represented, spanning hyperscalers, developers, operators, and investors.

The dialogue is expected to lead to time-bound reforms to accelerate investments, strengthen digital infrastructure, and position India as a global data centre hub.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

This roundtable signals the government’s intent to address long-standing pain points for data centre operators—power, land, and regulatory delays. For founders, this could mean faster project execution, lower costs, and clearer compliance frameworks. The emphasis on renewable energy and dual power feeders also aligns with global sustainability trends, which may attract ESG-focused investors. However, the dominance of hyperscalers in absorption suggests startups may need to carve niches in ancillary services—such as cooling, security, or software—to compete or collaborate effectively.

Key takeaways

• Founders in the data centre space may see faster approvals and clearer regulations, reducing project timelines and investment risks.
• The push for renewable energy procurement and dual power feeders could lower operational costs for operators.
• State governments’ involvement signals potential incentives or land allocations to attract data centre investments.
• Hyperscalers’ dominance in the market highlights opportunities for startups to partner with or supply to global players.