NITI Aayog urges states to assess resources before pitching for data centres
14 Oct 2026Updated 3 min ago1 source
NITI Aayog has released a framework calling on states to evaluate their natural resources, including a 20-to-30-year seasonal assessment of water availability, before pitching for data centres. The guidelines also advise states to protect existing resource users and mandate that developers fund grid assets built exclusively for their projects.
NIKAN Intelligence
What happened
NITI Aayog has introduced a new framework recommending that states perform long-term resource evaluations prior to pitching for data centre projects.
Why it matters
The policy framework aims to safeguard local water resources for existing users and ensure that the cost of dedicated power grid infrastructure is borne by the private developers rather than state utilities.
What we know
- States are asked to prepare 20-30-year seasonal assessments of water availability.
- The framework requires the protection of existing resource users.
- Developers must fund grid assets built exclusively for their projects.
What we don't know
- The specific timeline for states to adopt and implement these guidelines.
- Whether these recommendations are legally binding or purely advisory.
- How individual states currently pitching for data centres will adjust their policies.
What's next
State governments will need to review the NITI Aayog guidelines and potentially initiate long-term seasonal water resource assessments for proposed data centre sites.
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