Tamil Nadu Data Centre Policy 2021: the benchmark.
Ramanathapuram fell within the Policy's C-category incentive band, the tier designed to attract investment outside the established Chennai cluster, and remains a Category C district under the Tamil Nadu Industrial Policy 2021. The Data Centre Policy applied until 31 March 2026. The project uses its measures as the benchmark it asks the State to match, through a successor policy or a project package; the measures that matter most at 100 MW are power-related: the transmission pathway, dual supply, electricity tax and open-access terms.
100%Electricity tax subsidy2021 policy benchmark, five years
50%Open access charges2021 policy benchmark
60/70%Cross-subsidy reductionWind / solar; 2021 benchmark, subject to TNERC regulations
2Independent supply feedsDual supply at 50 MW, extra feeder above 100 MW; requested
1Single windowGuidance Tamil Nadu; requested
CCategory C districtTamil Nadu Industrial Policy 2021
Central measures apply on top.
Data centres of 5 MW IT load and above have had infrastructure status since October 2022, which opens infrastructure lending and longer-tenor borrowing. The Union Budget 2026-27 announced measures to position India as a hub for cloud and AI infrastructure, with scheme details to be confirmed. The IndiaAI Mission's compute programme benefits tenants empanelled under it. NITI Aayog's Data Centre Evaluation Framework of October 2026 gives States a common set of parameters, and Setupuram is structured to meet each of its pillars.
The global capital scale.
Meeting the world's data-centre demand between now and 2030 needs capital at the scale of national infrastructure programmes. Setupuram's proposed 100 MW initial capacity sits on 200 contiguous coastal acres, with land to expand in stages. The indicative estimate is up to US$1 billion for Phase 1 infrastructure, excluding compute. This is a small share of that global need, with downstream compute and application investment additional.
US$5.3THyperscaler capex2025 to 2030
US$6.7TTotal investment needBy 2030
US$221BPrivate infra funds raised2025
~US$1TCommitted capitalInfrastructure and real-estate funds