{"id":86920,"date":"2026-10-16T18:34:28","date_gmt":"2026-10-16T13:04:28","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=86920"},"modified":"2026-10-16T18:34:51","modified_gmt":"2026-10-16T13:04:51","slug":"niti-aayog-data-centre-framework","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/16-10-2026\/niti-aayog-data-centre-framework","title":{"rendered":"The Data Centre Evaluation Framework: NITI Aayog Report"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Science and Technology\/Environment<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>NITI Aayog released a report called <strong>\u2018The Data Centre Evaluation Framework to Help States Plan for Sustainable Growth\u2019, <\/strong>which recommends assessing infrastructure readiness before approving capacity additions.\n<ul class=\"wp-block-list\">\n<li>The report comes amid the rapid expansion of India\u2019s data centre industry.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Recommendations<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Power Readiness Map: <\/strong>Developers, electricity distribution companies (DISCOMs) and state transmission utilities jointly prepare a Power Readiness and Ramp-up Plan before projects are approved.\n<ul class=\"wp-block-list\">\n<li>This would detail total electricity requirements, sanctioned capacity, year-wise electricity availability, infrastructure upgrades and the agencies responsible for their implementation.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Above 20 MW Requirement:<\/strong> For data centres with electricity requirements above 20 megawatts (MW), it proposes mandatory automated demand-response readiness and integration with State Load Dispatch Centres.<\/li>\n\n\n\n<li><strong>A \u2018five-pillar framework\u2019<\/strong> also covers environmental safeguards, climate risks, and governance.\u00a0<\/li>\n\n\n\n<li>It proposes a<strong> central audit mechanism, <\/strong>with the Ministry of Electronics and Information Technology as the nodal Ministry.<\/li>\n\n\n\n<li><strong>The framework encourages States to<\/strong> plan infrastructure ahead of demand, identify resource constraints early and link incentives to measurable outcomes.<\/li>\n\n\n\n<li>The presentation does not say <strong>whether the framework has been formally adopted or whether its recommendations <\/strong>will be binding on States.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Data Centres in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India had <strong>271 data centres<\/strong> as of January 2026, according to the Council on Energy, Environment and Water (CEEW).\n<ul class=\"wp-block-list\">\n<li>The installed capacity of India\u2019s data centres stood at about <strong>1.57 gigawatts (GW) in August 2026.<\/strong><\/li>\n\n\n\n<li><strong>By 2030, <\/strong>it is projected to <strong>hit 6.5 GW,<\/strong> which is a<strong> fourfold expansion<\/strong> in just <strong>four years.\u00a0<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Electricity demand <\/strong>from these facilities is expected to rise from<strong> about 13 terawatt-hours (TWh) in 2024 <\/strong>to roughly<strong> 57 TWh by 2030.\u00a0<\/strong><\/li>\n\n\n\n<li>The Union Ministry of Power estimates that <strong>artificial intelligence alone will add 26.3 gigawatts of new demand by 2031-32.<\/strong><\/li>\n\n\n\n<li><strong>Most data centres are clustered around existing tech hubs<\/strong> of Mumbai, Hyderabad, Bengaluru, and the National Capital Region. These are precisely the places where <strong>water and grid stress are already most acute.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Concerns with Expansion of Data Centres<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Water Consumption:<\/strong> A 100 MW data centre consumes about 2 million litres of water daily. That is equivalent to the daily use of roughly 6,500 households.\n<ul class=\"wp-block-list\">\n<li>India\u2019s data centres consumed an estimated 150 billion litres of water in 2024-25. By 2030, that figure is projected to more than double to 358 billion litres annually.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Water Stressed Regions:<\/strong> The water use matters because data centres are clustering in <strong>India\u2019s most water-stressed regions.\u00a0<\/strong>\n<ul class=\"wp-block-list\">\n<li>Rajasthan extracts 147.11% of its annual groundwater recharge, the second highest rate in the country.\u00a0<\/li>\n\n\n\n<li>Several groundwater assessment units in Maharashtra are classified as semi-critical.\u00a0<\/li>\n\n\n\n<li>Hyderabad\u2019s surface water supply dropped 20% during the summer of 2024 due to poor monsoon recharge, forcing the water board to ration supply.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>India\u2019s power grid <\/strong>is already straining under record demand. India curtailed 300 GW-hours of renewable energy in the first quarter of 2026 alone, simply because the grid could not carry it.\n<ul class=\"wp-block-list\">\n<li>Over the past five years, India has met only about 80% of its annual transmission targets.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Renewable Energy Challenges:<\/strong> Solar projects are being built faster than the wires to carry their power. This matters because data centres need reliable, uninterrupted electricity.\n<ul class=\"wp-block-list\">\n<li>If renewable energy cannot reach them, the power will come from coal, adding to the burden of carbon emissions that India is trying to curtail.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Rise in Surface Temperature: <\/strong>A study found that data centres raise land surface temperatures by an average of 2\u00b0C within a 10 km radius, with extreme cases reaching 9.1\u00b0C.\n<ul class=\"wp-block-list\">\n<li>The study estimates that approximately 340 million people globally live within these affected zones.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>The Governance Gap: <\/strong>The data centre policies of various States offer generous incentives in the form of electricity duty exemptions, transmission charge waivers, stamp duty relief, and fast-track clearances.\n<ul class=\"wp-block-list\">\n<li>None of the major State policies require a grid impact assessment before commissioning.\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Governments should introduce <strong>phased power and water use standards <\/strong>with enforceable benchmarks.<\/li>\n\n\n\n<li><strong>A national AI Energy Star rating<\/strong> would let buyers and regulators compare how energy-efficient a facility or model actually is.<\/li>\n\n\n\n<li><strong>A national sustainability framework:<\/strong> It would establish minimum standards for renewable energy sourcing, water consumption disclosure, grid impact assessment, and thermal load evaluation.\n<ul class=\"wp-block-list\">\n<li>It would create a common set of expectations for investors and a common set of protections for consumers.\u00a0<\/li>\n\n\n\n<li>It would also recognise that environmental constraints are economic constraints, and that ignoring them only creates larger costs later.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The rapid adoption of AI worldwide is set to transform both the energy sector and the environment.\u00a0<\/li>\n\n\n\n<li>AI-driven data centres are projected to multiply electricity and water demand\u2014raising concerns of higher CO\u2082 emissions, resource stress, and e-waste.<\/li>\n\n\n\n<li>AI also offers powerful solutions by enabling energy efficiency, renewable integration, and climate adaptation.\u00a0<\/li>\n\n\n\n<li>The challenge ahead lies in ensuring that AI\u2019s energy-hungry growth is powered by clean, sustainable sources while leveraging its potential to build a greener, more resilient future.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/news\/national\/states-should-evaluate-natural-resources-before-pitching-for-data-centres-niti-aayog\/article71584261.ece\" target=\"_blank\" rel=\"noopener\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> NITI Aayog released a report called \u2018The Data Centre Evaluation Framework to Help States Plan for Sustainable Growth\u2019, which recommends assessing infrastructure readiness before approving capacity additions. <\/li>\n<p><\/p>\n<p><strong> Recommendations <\/strong><\/p>\n<li class=\"ms-5\"> Power Readiness Map: Developers, electricity distribution companies (DISCOMs) and state transmission utilities jointly prepare a Power Readiness and Ramp-up Plan before projects are approved. <\/li>\n<li class=\"ms-5\"> This would detail total electricity requirements, sanctioned capacity, year-wise electricity availability, infrastructure upgrades and the agencies responsible for their implementation. <\/li>\n<p><a href=\" https:\/\/www.nextias.com\/ca\/current-affairs\/16-10-2026\/niti-aayog-data-centre-framework \" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-86920","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/86920","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=86920"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/86920\/revisions"}],"predecessor-version":[{"id":86922,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/86920\/revisions\/86922"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=86920"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=86920"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=86920"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}