Policy / Opening up
India
India has proposed a long tax holiday for foreign cloud providers using Indian data centres.
The 2026-27 Union Budget proposed an exemption through tax year 2046-47 for eligible foreign cloud providers that serve customers through Indian data centres and local resellers. Data centres have had infrastructure status since the 2022-23 Budget, which helps with credit access. Government figures put installed data centre capacity at 1.57GW in August 2026. Enactment of the tax measure was not confirmed from a fetched source.
Power and grid
The government note of September 2026 cites 1.57GW of installed capacity and clean-power schemes, but we did not verify specific grid connection rules for data centres.
The rules and programmes
| Instrument | Kind | Status | What it does |
|---|---|---|---|
| Tax exemption for foreign cloud providers using Indian data centres Read the cited source | Tax or incentive | proposed | Taxation and Other Laws (Amendment) Bill 2026 FAQs describe exemption to 2046-47 where the foreign firm does not own the facility and sells via a local reseller. |
| Budget 2026-27 cloud and AI infrastructure measures Read the cited source | Tax or incentive | proposed | Describes a 15% on-cost safe harbour margin for related-party arrangements and keeps domestic activity taxable. |
| Infrastructure status for data centres Read the cited source | Policy | in force | Added to the Harmonized List of Infrastructure in the 2022-23 Budget, a policy designation rather than standalone legislation. |
Recorded compute programme evidence
ComputeFinder has 1 programme record tagged IN. The list is alphabetical, not a ranking. Records may describe current, future, past or non-application programmes. A region tag is not a decision about eligibility, availability or award; open the evidence page and check the current official terms.
Recorded scientific-system evidence in India
These separately dated records identify systems and institutions, not current operating status, campus boundaries or available compute. Their evidence checks do not refresh the policy facts on this page.
- C-DAC Pune National AI Facility (PARAM Siddhi) Evidence checked 14 October 2026.
- PARAM Shivay (IIT(BHU), Varanasi) Evidence checked 17 October 2026.
- PARAM Ganga (IIT Roorkee) Evidence checked 17 October 2026.
- PARAM Kamrupa (IIT Guwahati) Evidence checked 17 October 2026.
See all recorded Indian site and system evidence. Follow each system's dated original source; no current system-specific allocation route is verified here.
Related developments
- CleanMax reports an MoU with Neysa and a planned compute project in Kurnool
- E2E Networks announces additional data-centre capacity, not a compute availability commitment
- Microsoft opens its India South Central cloud region in Hyderabad
- India publishes a government overview of its data centre policy and power outlook
These news accounts have their own sources, dates and limits. They do not refresh the older evidence on this page.
Checked against the primary sources linked above on 2 October 2026. Due for review by 1 January 2027. This is a summary, not legal advice. If something is out of date, tell us.
Cite this page
ComputeFinder. (2026, October 2). India: data centre and compute policy. ComputeFinder. Retrieved November 14, 2026, from https://computefinder.net/policy/india
BibTeX
@misc{computefinder_policy_india,
title = {India: data centre and compute policy},
author = {{ComputeFinder}},
year = {2026},
howpublished = {\url{https://computefinder.net/policy/india}},
note = {Page last checked 2 October 2026. Retrieved 14 November 2026.}
}Page link: https://computefinder.net/policy/india. Page last checked 2 October 2026. Retrieved 14 November 2026. Cite the provider or the primary source for any fact you rely on.
Other places
How we label evidence
- Official source the body that made the rule or the data says so
- Two sources agree independent sources match
- One source, not confirmed a single report or claim
- Watching a signal, not shown as a fact