Telangana tops India’s data center policy rankings: S&P Global
- Telangana offers India’s most attractive data center policy package, S&P Global says.
- Telangana, Maharashtra, Uttar Pradesh and Gujarat scored around 50 out of 100.
- The index assessed 19 state policies across 11 states since 2016.
- India’s data center capacity is expected to reach 26.3 GW by FY2031-32.
NEW DELHI, INDIA — Telangana offers the most attractive state policy package for data centers in India, backed by strong electricity and regulatory incentives, with Maharashtra, Uttar Pradesh and Gujarat close behind.
All four leading states scored around 50 out of 100 on S&P Global Energy’s Data Center Policy Attractiveness India (DCPAI) index.
Four states lead, three clusters follow
The index evaluated 19 state policies covering information technology (IT), IT-enabled services (ITeS), data centers and global capability centers (GCCs) across 11 states since 2016, Free Press Journal reported.
It scored states on electricity, land and capital, operational and technical support, and regulatory and ease of doing business frameworks.
Maharashtra and Uttar Pradesh have balanced frameworks covering power, infrastructure, capital and regulation, while Gujarat leads on electricity and ease of doing business measures aimed at hyperscalers, the report said.
A second cluster scoring 42 to 45 includes Odisha, Haryana, Andhra Pradesh and Karnataka, with Andhra Pradesh leading on land and capital support and Karnataka offering notable ease of doing business measures.
Odisha and Haryana focus on broad incentives spanning the entire project life cycle.
A third cluster scoring 30 to 40 includes Rajasthan, Tamil Nadu and West Bengal, where Tamil Nadu performs strongly on capital expenditure support but scores lower on electricity incentives.
Capacity set to multiply
India’s existing data center capacity stands at about 1.5 gigawatts (GW), with 5 GW committed over the next decade and another 6 to 7 GW announced or in early planning.
Citing parliamentary projections, the report said capacity is expected to reach 26.3 GW by fiscal 2031-32.
Electricity demand from Indian data centers is estimated to grow at a compound annual rate of 18% between 2025 and 2035.
S&P Global Energy said “competitive federalism” is driving states to offer targeted incentives, faster clearances and reliable clean power as data centers become a distinct infrastructure asset class.
The findings appear in the report “India Forward: Reimagining Growth.”
For outsourcing buyers, state data center policy shapes where data center capacity, cloud regions and the global capability center (GCC) operations that rely on them will cluster.
States with cheaper, more reliable power can lower hosting costs for providers running AI and digital workloads from India.
Firms comparing delivery options can benchmark providers on the top BPO companies worldwide list by where their infrastructure sits.
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- Seven Indian states target 1,380 GCCs by 2031: CBRE · 26 Aug
- Maharashtra targets 400 GCCs, 400,000 jobs · 21 Aug
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
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