India's Tamil Nadu government unveils new policies for data centers

Dec 01, 2021 | Posted by AbdulRahmanOladimeji

The government of Tamil Nadu, India has revealed a new data center policy. According to the new policy, the Tamil Nadu government will provide connectivity incentives, land, and power to support the development of new data centers. However, for data center firms to receive these incentives, they must invest more than ₹500 crores ($66.5 million) in the data centers. In addition, at least 30 percent of their energy requirements must come from green sources. 

The policy will only apply to data centers incorporated from April 1, 2021, to March 31, 2026. In addition, data centers will be able to purchase power from the state-owned Tamil Nadu Generation and Distribution Corporation. Upon doing that, they’ll get a 100 percent subsidy on the energy tax for five years. In addition, data centers in class A & B districts will get 50% off stamp duty. For data centers in class C regions, the companies will get 100% off stamp duties, and up to 50% subsidy on the cost of land. 

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