New Delhi: MeitY Secretary S Krishnan has urged Microsoft to consider setting up future data centre capacity closer to power generation hubs, saying this could reduce electricity transmission costs and make large-scale infrastructure more economical.

Speaking at the Microsoft AI Infrastructure Summit India on Monday, Krishnan said data centres need not remain concentrated around cable landing stations and could increasingly be located closer to where electricity is generated.

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“My request to Microsoft would be that eventually you'll have to go and install capacity closer to where the power itself is generated so that we don't have to wheel it all across. There are costs involved there,” Krishnan said.

“It'll be from a cost perspective for India, for the ecosystem and for you also. It'll be much more economical if you go closer to where the power itself is generated,” he added.

Krishnan said India's extensive power grid and growing renewable energy capacity could play a key role in supporting the country's expanding data centre and artificial intelligence infrastructure.

He said policy changes had also made it easier for companies to establish data centres and connect them to essential infrastructure. He pointed to taxation measures, ease of doing business initiatives and changes introduced under the new telecom law.

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“It's much easier today in India to actually build a data center and connect it to the grid and bring it on stream than it is in many countries even in Europe,” he said.

The MeitY Secretary also said obtaining electricity permissions and access to other resources had become easier.

Referring to Microsoft's ongoing infrastructure expansion in India, Krishnan said the company's buildout was progressing ahead of schedule. He added that the demand for data centre infrastructure was not limited to India and was also being driven by global requirements.

Krishnan also stressed the importance of using power and water efficiently at data centres, saying sustainability would remain a key consideration as the sector expands.

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He said investments in data centre infrastructure would initially generate employment through construction and related activities. However, bringing more research and development work to India could create higher-quality employment opportunities.

“Eventually, when you bring in more research and when you bring in more development, there will be far better quality jobs which will get created in India's economy,” he said.

Krishnan said the government would continue to support Microsoft's infrastructure expansion and facilitate faster development of data centres to meet both domestic and global requirements. (ANI)