MeitY Secretary Urges Microsoft to Site Data Centres Near Power Sources
MeitY Secretary S Krishnan has asked Microsoft to place future data centre capacity nearer power generation centres to reduce electricity transmission costs.
Ministry of Electronics and Information Technology (MeitY) Secretary S Krishnan has urged Microsoft to consider building future data centre capacity closer to power generation centres, arguing that this would cut the cost of moving electricity over long distances and make such infrastructure more economical.
Speaking at the Microsoft AI Infrastructure Summit India, Krishnan said data centre capacity should increasingly shift towards locations where power is generated, instead of being clustered mainly around cable landing stations. He noted that wheeling electricity across long distances carries costs, and that siting facilities near generation sources would benefit India, the wider ecosystem and the company alike.
Krishnan said India's extensive electricity grid and renewable energy capacity should be put to effective use as the country expands its data centre and artificial intelligence infrastructure. He also pointed to a policy environment that has made it easier to build data centres and connect them to supporting infrastructure, citing taxation policies, ease-of-doing-business measures and changes introduced under the new telecom law. According to him, building a data centre and bringing it on stream is now simpler in India than in many countries, including in Europe, with electricity permissions and access to other resources also becoming easier.
On Microsoft's infrastructure expansion in the country, the MeitY Secretary said the buildout was running ahead of schedule and described the need for such infrastructure as both an Indian and a global requirement. He stressed the importance of efficient power and water use at data centres, saying sustainability should remain a key consideration as capacity grows.
Krishnan said investments in this infrastructure would initially generate employment through construction and related activities, while drawing more research and development into India could lead to higher-quality jobs. He added that the government would continue to facilitate Microsoft's infrastructure expansion and help the company build faster to meet requirements in India and globally.