India’s lower house has approved a comprehensive tax amendment bill to attract data centre investments amid surging demand, complemented by state-level policies and multi-billion-dollar private sector plans, positioning the country as a major industrial hub for digital infrastructure.
India’s lower house has approved a tax amendment bill aimed at making the country more attractive to data centre investors, in a move that comes as demand for digital infrastructure surges across the economy. According to The Economic Times, the Lok Sabha passed the Taxation and Other Laws (Amendment) Bill, 2026, which is designed to lower set-up costs and give larger legal recognition to leased data centre facilities.
The legislation would bring leased facilities within the tax framework and remove notification requirements for eligible foreign companies and data centres until March 31, 2047, according to the reporting. That long runway is intended to give global operators more certainty as they weigh India against competing markets. The changes are expected to support investment at a time when the sector is expanding rapidly, with capacity projected to exceed 7 GW IT by 2030, nearly four times current levels.
The push also fits a wider policy shift across Indian states. Uttar Pradesh has separately cleared its own data centre policy for 2026, with the state government targeting more than ₹2 lakh crore in investment and over 2 GW of additional capacity. The policy package includes capital and interest subsidies, as well as concessions on land, stamp duty and electricity charges, in an effort to attract AI-ready and green facilities.
Private investment is already building around the sector. Anant Raj has outlined a ₹20,000 crore plan for its data centre and cloud services business, while other reports cited by Indian media said Finance Minister Nirmala Sitharaman described roughly $70 billion in ongoing data centre investment as part of the wider tax push. Together, the measures suggest India is trying to turn data centres into a major industrial bet rather than just a supporting part of the digital economy.
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