Telangana Leads in Data Centre Policy Attractiveness

Telangana has emerged as the state offering the most attractive policy package for data centres in India, according to a latest S&P Global report. The state has been recognised for its strong electricity and regulatory incentives, while Maharashtra and Uttar Pradesh offer balanced packages covering power, infrastructure, capital and regulatory support. Gujarat stands out for electricity incentives and ease-of-doing-business measures aimed at attracting hyperscalers. All four states scored around 50 out of 100 on S&P Global Energy’s Data Center Policy Attractiveness India (DCPAI) index.

The DCPAI index assessed 19 policies across 11 states since 2016, covering IT, IT-enabled services, data centres and Global Capability Centres. The evaluation considered electricity, land and capital, operational and technical support, and regulatory and ease-of-doing-business measures. Andhra Pradesh, Odisha, Haryana and Karnataka formed the second cluster with scores of 42–45, while Rajasthan, Tamil Nadu and West Bengal scored between 30 and 40. India currently has about 1.5 GW of data centre capacity, which is projected to reach 26.3 GW by 2031–32. Data centre electricity demand is also estimated to grow at an annual rate of 18% between 2025 and 2035.