ENA Economy 2025-09-15 18:28:12 <p><span style="font-size:14px"><strong>New Delhi, Sep 15 (KNN)</strong> The Indian government is considering far-reaching incentives to boost the data centre industry under its draft National Data Centre Policy. </span></p> <p><span style="font-size:14px">If approved, developers may receive a tax holiday of up to 20 years, provided they meet specified benchmarks in capacity, energy efficiency, and job creation.</span></p> <p><span style="font-size:14px">Another major benefit proposed is GST input tax credit on capital assets. This would apply to things such as construction materials, cooling systems, HVAC, and electrical equipment&mdash;items critical to data centre infrastructure.</span></p> <p><span style="font-size:14px">To attract global players, companies that lease or operate at least 100 MW of capacity could qualify for permanent establishment status in India under the policy.</span></p> <p><span style="font-size:14px">Meanwhile, firms that set up AI development hubs or global capability centres alongside their data facilities in the same city could receive special incentives.</span></p> <p><span style="font-size:14px">Addressing two major bottlenecks&mdash;land and power&mdash;the draft policy proposes that states identify and reserve land near industrial corridors, IT hubs, or manufacturing clusters to build data centre parks. </span></p> <p><span style="font-size:14px">To ensure reliable electricity supply, the IT ministry will collaborate with the Ministry of Power and other regulatory bodies. </span></p> <p><span style="font-size:14px">Green energy will also be encouraged via uniform standards for energy storage, and possibly using small modular reactors for large data centre hubs.</span></p> <p><span style="font-size:14px">This push comes as Indias data centre market is expanding rapidly: throughput has been increasing at about 24% per year since 2019. </span></p> <p><span style="font-size:14px">Pathways for new capacity are strong&mdash;around 795 MW is expected to come online by 2027, bringing total projected capacity to about 1,825 MW. Occupancy is already high, around 75-80%, underscoring a growing demand.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 43511 https://knnindia.co.in/news/newsdetails/economy/data-centre-developers-eye-long-term-tax-breaks-and-gst-credit-in-new-draft-policy 2025-09-15 18:28:12 knnindia.co.in