Budget 2026: Data Centre Tax Holiday to Boost India's Digital Economy
Business
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Moneycontrol•01-02-2026, 14:16
Budget 2026: Data Centre Tax Holiday to Boost India's Digital Economy
- •Finance Minister Nirmala Sitharaman announced a tax holiday until 2047 for overseas firms providing cloud services through data centres to Indian customers.
- •The measure aims to attract long-term capital, enhance India’s competitiveness in the digital economy, and improve viability for large-scale data centre investments.
- •Industry experts highlight that data centres require significant investments (around $10 million per 1 MW capacity) and are critical due to AI tools and data sovereignty pressures.
- •Real estate developers like Anant Raj Ltd, Lodha Developers, and Mindspace Business Parks REIT stand to benefit, with many already venturing into the data centre business.
- •The policy is expected to accelerate hyperscaler investments, create jobs, and position India as a global data centre hub, attracting long-duration global capital.
Why It Matters: The Budget 2026 tax holiday for data centres is set to transform India into a global digital hub.
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