- India urges Microsoft to locate data centres near power-generation sites to cut costs
- Microsoft unveils Hyderabad as its fourth Indian cloud region for advanced AI workloads
- India’s power grid and renewables offer opportunities to align data centres with energy supply
India is looking to reshape how its next wave of data centres is planned, with MeitY Secretary S Krishnan urging Microsoft to consider locating future facilities closer to power-generation centres rather than concentrating capacity around traditional connectivity hubs.
The suggestion comes as the rapid expansion of artificial intelligence increases demand for data centres and, in turn, for reliable and affordable electricity.
Krishnan said placing computing infrastructure nearer to generation points could reduce the cost of transmitting power over long distances and improve the economics for both Microsoft and the wider ecosystem, as per an Economic Times report.
Speaking at the Microsoft AI Infrastructure Summit India, Krishnan said India's large electricity grid and growing renewable-energy capacity provide an opportunity to align data-centre expansion more closely with the country's power infrastructure.
The comments also come as Microsoft expands its footprint in India. The company on Monday announced its India South Central cloud region in Hyderabad, its fourth cloud region in the country after Pune, Chennai and Mumbai.
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Microsoft said the Hyderabad region is designed for advanced AI workloads and will serve as a strategic hub for Asia and the Global South.
Krishnan said Microsoft's infrastructure buildout in India is progressing ahead of schedule and indicated that the government would continue facilitating faster expansion.
Krishnan also argued that India's improving policy environment has made it easier to establish data centres, secure electricity connections and bring facilities online.
However, the growing infrastructure footprint is also bringing power, water and sustainability considerations into sharper focus. Krishnan called for efficient use of these resources as AI-driven capacity expands.
Microsoft's new Hyderabad region, for its part, has been designed for effectively zero water use for cooling, according to the company.
Beyond infrastructure, Krishnan said greater investment in research and development could help India capture higher-quality employment opportunities.
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The government's broader objective, he said, is to ensure that the expansion of AI infrastructure translates into domestic capability, jobs and economic value.
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