Overview
- NITI Aayog released the 'Data Centre Evaluation Framework' on Wednesday, Oct. 14, urging states to treat data centres as strategic infrastructure and to approve projects only after verifying power, water and land capacity.
- The framework demands concrete safeguards such as 20–30 year water‑balance plans, dedicated grid upgrades paid by developers, automated demand response for facilities over 20 MW, and a proposed central audit role for MeitY to check compliance.
- It tells states to restrict projects in water‑stressed basins, count renewable energy only when matched hour‑by‑hour, and tie incentives to measurable targets for commissioning, jobs, renewable supply, PUE and WUE with penalties for missed commitments.
- The release comes as the Centre says it is preparing a national data‑centre policy and follows months of local pauses, moratoriums and legal challenges in India, the U.S. and Canada over strain on utilities, water and community quality of life.
- Beyond regulation, the debate highlights trade‑offs: developers promise large capital and tax revenue while research shows few permanent local jobs and critics warn of bill increases, freshwater stress and limited community benefits.