Goyal Woos US Investors, Positions India as Global Data Centre Hub

Commerce and Industry Minister Piyush Goyal has pitched India as an attractive destination for global data-centre investment, citing its expanding power infrastructure, access to renewable energy, relatively low operating costs and large pool of technology professionals.

Addressing Indian-Americans at a community event organised by the US Indian Community Foundation in Chicago, Goyal urged American companies and entrepreneurs of Indian origin to invest in India, particularly in data infrastructure and emerging technologies. His remarks came during a US visit that included participation in the G20 Trade Ministers’ Meeting in Milwaukee and meetings with American businesses and investors.

Goyal said India’s interconnected electricity network gives the country an advantage in attracting data-centre operators, whose facilities require reliable power supplies and multiple levels of redundancy.

He said India now has a single national grid with an installed capacity of about 520 gigawatts and projected that capacity could reach 1,000 GW over the next six to seven years. According to Goyal, clean sources including solar, wind, hydropower and nuclear energy account for around 60 per cent of the current installed capacity, with that share expected to rise to 70 per cent by 2033.

The minister said companies could obtain around 80 per cent guaranteed clean electricity round the clock at a cost of roughly seven to eight cents, while a fully clean-energy supply could cost approximately 11 to 12 cents. He argued that the combination of reliable power, renewable energy and grid connectivity could make India competitive for energy-intensive data-centre operations.

Goyal also pointed to the country's comparatively low data and infrastructure costs. He said data prices in India are among the lowest globally and could be equivalent to only around 5-8 per cent of what consumers pay in the United States on a per-gigabyte basis.

According to the minister, establishing data-centre infrastructure in India could cost between one-fourth and one-fifth of the expenditure required for comparable infrastructure in the US or Europe. These figures were presented by Goyal as part of his investment pitch to the Chicago audience.

India's technology workforce was another factor highlighted by the minister. Goyal said around 1.4 million students graduate each year in science, technology, engineering and mathematics, providing companies with a large pool of potential technical talent.

The Commerce Ministry has separately identified data centres as an area with significant investment potential and has been engaging industry stakeholders on issues including reliable power, land availability and faster regulatory approvals. In September, Goyal said India's data-centre sector could attract around $200 billion in investment potential.

Goyal also called on Indian-Americans to contribute to India's economic expansion through investment, technology partnerships, entrepreneurship and knowledge-sharing. He described the community as a link between India and the United States and said stronger economic engagement could create opportunities on both sides.

His Chicago engagements followed the G20 Trade Ministers’ Meeting in Milwaukee, where discussions covered global trade challenges, the World Trade Organisation and concerns surrounding forced labour and excess production capacity. Goyal also held meetings with US companies, investors and business groups during his visit.

The minister said India was considering bringing a large, multi-sector business delegation to the region, potentially during the first quarter of next year, as New Delhi seeks to deepen commercial and investment ties with the United States.