Data · Rest of World
In its push to become Big Tech’s data center hub, India is overlooking local resistance
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big tech to set up data centers in the country.
Key facts
- In September 2025, Google withdrew plans for a massive $1 billion, 470-acre data center in Indianapolis after local residents opposed the farm-to-data-center transformation
- Google’s $15 billion data center project in the southern Indian state of Andhra Pradesh has come under fire for environmental, energy, and water concerns
- In February, the Indian government announced a 20-year tax holiday for foreign cloud service companies using India-based data centers to serve global customers
- As of 2025, the U.S. housed more than half of the world’s hyperscale data centers, which are typically around 930 square meters and consume more than one megawatt of power
Summary
India launched an unprecedented tax holiday for foreign cloud providers last month. While the government tries to fast-track land for data center hubs, it faces escalating resistance from farmers over opaque acquisition processes and the loss of fertile agricultural land. Google and Microsoft’s projects are under fire for alleged encroachments and threats to water resources. In February, the Indian government announced a 20-year tax holiday for foreign cloud service companies using India-based data centers to serve global customers.