NITI Aayog Urges States to Weigh Data Center Resource Needs

India’s NITI Aayog has recommended that states consider electricity supply, water access and local effects when reviewing data-center proposals, making resource readiness a factor in decisions to accelerate approvals for AI infrastructure.

Published Oct. 14, the framework offers evaluation guidance for state governments. The framework gives state governments criteria for evaluating data-center proposals.

The recommendations cover whether the grid can support a proposed facility and any needed upgrades, whether water will be available over time, and how a project could affect current users and nearby communities. The framework advises faster approvals when projects show they have adequate resources, local safeguards and public value.

The guidance comes as companies plan large AI infrastructure investments. Google has announced plans to invest about $15 billion from 2026 through 2030 in an AI hub in Visakhapatnam.

Amazon’s planned data center in Thane, near Mumbai, is projected to use 125 kiloliters of water per day. Amazon says the facility would not use water for cooling or draw electricity from the local distribution network. Its estimate includes 115 kiloliters of treated sewage water for landscaping and irrigation and 10 kiloliters for employees’ basic needs; these are projected figures, not operating measurements.

The review also intersects with India’s data-center power needs in a five-gigawatt scenario, which has been estimated to require 30 GW to 40 GW of renewable generation capacity.