NITI Aayog has issued a framework advising states to evaluate natural resources—especially water and power availability—before pitching for or approving data centre projects. The guidance focuses on long-term planning to ensure that new facilities can be supported by existing infrastructure rather than prompting short-term competition for investment announcements.
The framework calls for states to conduct 20-30-year seasonal assessments of water availability and to protect existing users. It also emphasizes planning for electrical supply by requiring that data centre developers fund grid-related assets built specifically for their projects. The overall aim, as described by outlets, is to help states move toward attracting projects that align with resource constraints and can produce measurable economic value.
While both reports highlight the resource assessment approach, the emphasis differs: one outlet stresses the specific planning and funding provisions for water and grid assets, while the other frames the guidance as a shift from competing for announcements toward attracting investible projects that are feasible within local infrastructure capacity.
