Data Centers Fuel Power Demand: Oil Minister Eyes Revival of Gas Plants

• Oil Minister Hardeep Singh Puri projects significant electricity demand from data centers, driven by Union Budget incentives.
• The growth of data centers, crucial for India's global tech hub ambition, necessitates substantial energy security.
• A 20-year tax holiday for data centers is a major incentive to establish India as a global data hub.
• Natural gas supply is expected to be abundant, peaking by FY 2027-28, supported by imports from Qatar and Mozambique, and an HPCL-UAE LNG agreement.
• A ₹20,000 crore allocation for Carbon Capture, Utilization, and Storage (CCUS) will aid heavy industries in meeting sustainability goals.

Why It Matters: Data centers' energy needs will revive gas power plants, supported by abundant natural gas and tax incentives.