Introduce a single window clearance system for data centres: PwC-Assocham

The central government should introduce a single window clearance system for the data centre industry to streamline the “lengthy and cumbersome” approval processes, a report by PricewaterhouseCoopers (PwC) and Assocham has said.

“The data centre industry faces somewhat lengthy and cumbersome approval processes involving multiple authorities, which can delay project timelines and increase costs,” the report titled ‘The strategic role of data centres in empowering India’s digital revolution’ said.

“As a solution, the Government can implement a single window clearance system to streamline the approval process. This would centralise and expedite the permissions required from various departments,” it added.

Currently, only the state government of Maharashtra allows a single window clearance system for this industry. In the global market, the Economic Development Board (EDB) of Singapore provides a single point of contact for all data centre investment-related approvals.

The report also said there is a need for “clear, consistent” regulations for the growth of this industry.

“Streamlining the approval processes for setting up data centres, including land acquisition and environmental clearances, can significantly reduce setup time and costs,” it said.

The data centres have assumed significance owing to the scale of data generation in India amid the rapid adoption of modern technologies like the Internet of Things (IoT), Artificial Intelligence, 5G and quantum computing.

According to Ericsson, Indians will likely consume the most data globally by 2028, at 62 GB per user per month, ahead of developed markets such as the US, Western Europe and China.

In the enterprise segment, the big data analytics industry in India is expected to grow to eight times the current levels and is expected to reach $ 16 billion by 2025 from the current level of $2 billion.

The PwC-Assocham report also said that data centres include significant expenses related to power cooling and infrastructure maintenance. The Centre can provide subsidies or incentives for the adoption of renewable energy, which would reduce operational costs and promote sustainability.

“Government incentives for renewable energy use and stringent environmental regulations can drive the shift towards greener data centres,” it said.