Shares for a top NCR real estate builder jumped 12%. They hit ₹595.50 Monday, their best intraday rise in 13 months. This jump followed news of tax breaks for data centers. India might offer up to 20 years tax-free. The builder has expanded into data centers. They aim to meet rising infrastructure needs.
A draft policy by the IT ministry suggests tax exemptions. These would be for data center builders meeting specific goals. Goals include adding capacity, using less energy, and creating jobs. The ministry will ask the Finance Ministry for approval. They also want input tax credit on GST for capital goods. This includes construction and equipment.
An official said this plan supports job growth. It boosts local tech skills in AI and cloud computing. These benefits will reach smaller towns too.
Anant Raj entered the data center market in 2023. They plan to invest ₹100 billion. Their goal is 307 MW of data center space. They now operate 6 MW. They recently added 22 MW, reaching 28 MW total. Analysts expect new clients soon.
They predict 63 MW or 107 MW capacity by mid-2027. Their full 307 MW target could be met by 2034. This depends on securing more funding. Cloud services should make up 25% of their business by then.
India’s data center demand is growing fast. More internet users create more data. Government rules and AI use also drive this growth. One report estimates India’s data center capacity will reach 2,100 MW by March 2027. It is currently about 1,150 MW.