Telangana Leads India’s Data Centre Policy Rankings, Maharashtra And UP Among Top States In S&P Global Report

New Delhi: Telangana offers India’s most attractive state policy package for data centres, supported by electricity and regulatory incentives, according to S&P Global’s India Forward: Reimagining Growth report.

Maharashtra and Uttar Pradesh also rank among the leaders, offering balanced support across power, infrastructure, capital and regulatory requirements. Gujarat stands out for electricity incentives and measures that simplify business operations.

Four States Lead Policy Rankings

The four leading states scored around 50 out of 100 on S&P Global Energy’s Data Center Policy Attractiveness India index.

The assessment covered 19 policies introduced since 2016 across 11 states, including frameworks for IT, IT-enabled services, data centres and Global Capability Centres.

It compared electricity incentives, land and capital support, operational assistance and regulatory measures.

Andhra Pradesh Leads Land Support

Odisha, Haryana, Andhra Pradesh and Karnataka formed the second group, scoring between 42 and 45.

Andhra Pradesh led overall in land and capital benefits. Karnataka offered notable measures to improve business conditions, including protection under the Essential Services Maintenance Act.

Odisha and Haryana provided incentives covering different stages of a project’s life.

Rajasthan, Tamil Nadu and West Bengal scored between 30 and 40. Tamil Nadu performed strongly on capital spending support, including renewable energy infrastructure, but scored lower on electricity incentives, alongside West Bengal.

India Data Centre Capacity Expands

The report placed India’s existing data centre capacity at about 1.5 gigawatts.

Another 5 GW has been committed for the next decade, while 6–7 GW has been announced or remains in early planning.

Citing parliamentary projections, the report said total capacity could reach 26.3 GW by FY2031–32.

Electricity Demand Set To Rise

Electricity demand from Indian data centres is estimated to grow by 18 per cent annually between 2025 and 2035, including cooling and operational needs.

S&P Global Energy said competition among states is encouraging targeted incentives, faster approvals and reliable clean power as data centres become an increasingly important infrastructure category for the Indian economy.