NITI Aayog’s Frontier Tech Hub has proposed linking data-centre approvals and government incentives to electricity and water availability, environmental safeguards and measurable economic benefits as India expands its artificial intelligence infrastructure. The framework recommends long-term water assessments spanning 20–30 years, protection of existing supplies for households and agriculture, independent validation of water sources in stressed regions, metering and greater use of treated wastewater. It also calls for grid-readiness assessments before approving additional electricity loads, mandatory demand-response preparedness for facilities requiring over 20 MW, and incentives tied to verified outcomes such as renewable-energy use, water efficiency, employment and domestic procurement. The proposals come amid rapid sectoral expansion, with India’s data-centre capacity estimated at 1.6 GW in mid-2026 and projected to reach 6 GW by 2029. The framework seeks to balance AI infrastructure investment with resource security, environmental protection and the needs of local communities.
Source: IndianExpress