Execution tops sops as states race to attract data centres

As states compete to attract data centre investments amid rising cloud and artificial intelligence demand, industry executives say the real differentiator isn’t incentives or policy announcements, but the ability to deliver power, approvals and infrastructure on the ground.

Karnataka, Telangana, Maharashtra, Gujarat, Uttar Pradesh, Odisha, Tamil Nadu, Haryana and West Bengal have announced policies and incentives to position themselves as preferred destinations. But operators say the competition has now shifted from policy to implementation. For them, power remains the most critical requirement-data centres require uninterrupted electricity, high-capacity substations and long-term regulatory certainty.