India’s data-centre push lacks regulation

By Editorial Team31 Jul. 2026
India’s data-centre push lacks regulation

Visual Credits: Wikimedia Commons


India's rapid expansion of data centres is raising concerns over groundwater depletion, power consumption and limited employment generation even as states continue to offer generous incentives to attract investment, according to The Indian Express

A data center run by Yotta, a Mumbai-based firm, has led to a drop in groundwater from 30 metres to 180-250 metres in Uttar Pradesh. This resulted in locals becoming dependent on private vendors for their water needs. Also, local employment is mostly restricted to housekeeping and gatekeeping, with slim chances of long-term permanent jobs. The newspaper argues that data centres create relatively few permanent jobs compared with the land, electricity and water they consume.

In India, the most water-stressed among the top-10 data-centre hosting countries, there is little public debate over how AI data centres should be regulated, according to the newspaper. Meanwhile, states like Uttar Pradesh, Tamil Nadu and Telangana offer various forms of subsidies, duty exemptions on land and electricity, and fast approvals for large investors. 

Countries like the US, Singapore, the Netherlands, Ireland and Georgia are imposing moratoriums or complete bans on upcoming and proposed data centres over rising power costs, water stress, and pollution. 

In US, OpenAI signs multimillion-dollar deals with AP, Axios. In India, it fights ANI in court 

Did ANI news agency lose its copyright battle against OpenAI in the Delhi High Court because India lacks a regulatory framework tailored to artificial intelligence? 

The case highlighted a broader challenge: traditional copyright law may not be equipped to deal with AI systems trained on vast amounts of copyrighted material.

As artificial intelligence and digital infrastructure become increasingly central to the economy, India is beginning to define how these technologies will be governed through court rulings rather than a dedicated AI regulatory framework. By contrast, the European Union's AI Act, 2024,  adopts a risk-based approach to regulating AI technologies, while in the U.S., OpenAI has signed multimillion-dollar licensing deals with publishers such as the Associated Press and Axios to use their content. In India, however, it is defending its practices in court.

The Delhi High Court ruled that OpenAI’s use of ANI’s content to train ChatGPT did not amount to copyright infringement, marking India’s first substantive judicial view on whether AI companies can train large language models on copyrighted news content without a licence. The court held that ANI had failed to show ChatGPT reproduced its reports and said OpenAI’s storage of the material was protected under the Copyright Act’s research exemption.  

Indian government blocks Bitchat, tightens oversight of digital platforms 

The Centre asked GitHub to remove Bitchat, Jack Dorsey’s Bluetooth-based messaging app that can function without the internet, citing concerns over possible misuse. The move followed internet shutdowns in parts of central Delhi after student protests earlier this month and underscored growing government scrutiny of technologies that operate outside conventional communication networks.

Experts argued that targeting an open-source tool based solely on its "anticipated misuse" violates the legal principle of proportionality. According to Sofware Freedom Law Centre, India (SFLC), the order became public only because Dorsey posted the government’s notice on X, highlighting the lack of transparency around such takedown requests. “What we see emerging through these removals is a system of informal, decentralised censorship, where the government can direct content removals without transparency or oversight,” SFLC said. 

Tools like BitChat continue to work when power grids fail, or when natural disasters hit telecom infrastructure.

In a separate development, NITI Aayog held closed-door discussions with Meta, YouTube and other technology companies on India’s online content-blocking regime, including whether recently tightened timelines for removing content are operationally feasible. The consultations come as India refines the rules governing digital platforms, balancing regulation, innovation and compliance.

Together, the developments suggest that debates over AI and digital technologies are moving beyond new products and services. As these technologies become embedded in sectors ranging from energy and industry to public services, the legal and regulatory frameworks governing data, platforms and online information are becoming increasingly important part of India’s technology policy.

2,800 new electric buses to hit Delhi roads by 2028 

The Delhi government announced the addition of 2,800 new air-conditioned electric buses to the city fleet by August 2028 under the PM e-Drive Scheme. The move will expand Delhi's bus fleet to 14,000 vehicles by 2028–29,, reported The Hindu. 

Half of these will be 12 metres long, while the remaining 9-metre-long buses will be deployed on narrow roads and in rural areas to improve last-mile connectivity, said Delhi Chief Minister Rekha Gupta. Under the scheme, a maximum financial assistance of ₹35 lakh will be provided for each 12 metre electric bus and ₹25 lakh for each 9 metre bus. 

Tata, Mahindra Beat Tesla and BYD in Energy Efficiency 

Indian automakers Tata Motors and Mahindra secured the top two spots for electric vehicle energy efficiency in a global ranking released by the International Council on Clean Transportation's (ICCT) for 2025, reported Rest of World.

Tata Motors topped the rankings with an average energy consumption of 106 watt-hours per kilometre (Wh/km), followed by Mahindra at 113 Wh/km. Tesla and BYD ranked third and fourth, respectively, among the 22 automakers evaluated. This is a result of India's focus on building lightweight, energy-efficient vehicles. However, Indian EVs continue to lag in charging speeds and driving range, according to the report.

Global EV Sales rise 35% as West Asia Conflict drove up Oil Prices 

High oil prices, triggered by the West Asia conflict, are accelerating the shift to electric vehicles (EVs). Global EV sales rose 35% in the second quarter of 2026, reaching record levels in 50 countries, reported Agence France Presse (AFP)

Citing data from the International Energy Agency (IEA), the report found that the surge in EV sales followed a sharp rise in crude oil prices after the Strait of Hormuz closure disrupted global oil flow. From roughly $60 a barrel at the start of 2026, crude oil prices hit nearly $120 after Iran effectively closed the Strait of Hormuz. 

Countries, particularly in Europe and Southeast Asia, expanded incentives for EVs to reduce dependence on imported oil. The IEA expects EV sales to grow further in 2026. 

Chinese manufacturer launches batteries for Data Centres 

At the 2026 GGII Energy Storage Industry Summit, one of China's leading conferences for the battery and energy storage industry, Chinese battery manufacturer Jiangsu Highstar Battery Manufacturing introduced a range of lithium-ion and sodium-ion batteries designed for data centres, reported PR Newswire. Targeting backup, power distribution and grid-scale energy storage, the portfolio includes battery cells for in-rack backup units, uninterruptible power supply (UPS) systems and grid-side storage.

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Editorial Team

Editorial Team

A team of handpicked and dedicated writers committed to fact check each climate-related statement. They go to the roots and intent of each policy implemented, internationally and at home, to help you understand climate better.
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