India’s data centre industry is pushing back against a proposed India-specific certification and standardisation scheme, warning that it may hinder the sector’s growth and global competitiveness. Industry leaders argue that the new framework could create duplication of compliance requirements, lead to misalignment with international norms, and increase operational costs—undermining the country’s appeal as a favourable investment destination for global digital infrastructure players.
The proposal, which aims to introduce uniform domestic standards for data centre construction and operation, is intended to enhance quality, safety, and sustainability. However, operators contend that many existing data centres in India already comply with globally recognised certifications such as Uptime Institute’s Tier standards and ISO frameworks. Imposing additional local requirements, they argue, would result in unnecessary redundancies and administrative burdens.
Industry stakeholders are particularly concerned that the proposed standards may deviate from best practices widely accepted across the global data centre ecosystem. This misalignment could complicate efforts by multinational cloud providers, hyperscalers, and colocation firms to integrate Indian facilities into their global networks seamlessly.
Moreover, companies fear that higher compliance costs could slow down new capacity additions at a time when demand for data processing, storage, and digital services is surging. India is expected to nearly double its data centre capacity to around 2 GW by 2026, requiring substantial capital investment and timely project execution. Operators warn that additional regulatory layers may deter foreign investors and limit the industry’s ability to scale efficiently.
Industry bodies are urging the government to ensure that any new standardisation measures are consultative, harmonised with international benchmarks, and designed to support, rather than stifle, innovation and investment in the sector.
