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ARTICLE · 17 MARCH 2022

Legal Considerations For Investments In Data Centres In India

S&R Associates
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In the 2022 budget speech, the Finance Minister announced that data centres will be considered as "infrastructure" to facilitate credit availability.

IndiaGovernment, Public Sector
Rajat Sethi
Rajat Sethi
Raya Hazarika
Raya Hazarika

With the continuing focus on digitisation accelerated by Covid lockdowns and rising demand for sustainability and green goals, there is an increase in activity relating to data centres for operators and investors as well as policymakers and regulators.  In order to attract investment in data centres in India with a vision "to make India a global data centre hub", the new Government policies intend to provide various incentives and exemptions to promote data centre industry growth.  In the recent past, several multinational and domestic companies have set up data centres in India.  In the 2022 budget speech, the Finance Minister announced that data centres will be considered as "infrastructure" to facilitate credit availability.  In addition to this classification, two other policy initiatives announced in the budget speech which are expected to incentivize data centre investments are the 5G spectrum auction and the widening footprint of optical fibre.

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This insight/article is intended only as a general discussion of issues and is not intended for any solicitation of work. It should not be regarded as legal advice and no legal or business decision should be based on its content.

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