Artificial Intelligence

Govt has a rethink on data centre sops

Pratap Vikram Singh

January 16, 2026 | 4 Min Read

While backing data centres for strategic sectors, the Centre is unwilling to subsidise global cloud infrastructure built for export, particularly as it generates few jobs while placing heavy demands on resources.

The AI gold rush in the last two years has catapulted data centres into a high-stakes game. Last year, the Ministry of Electronics and IT (MeitY) revisited a draft data centre policy that had undergone multiple iterations over the past five years. The Ashwini Vaishnaw-led ministry reportedly circulated a draft among stakeholders, proposing tax incentives for 20 years, among other measures.

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