Fragmented approval processes remain a major impediment to large-scale investments in information technology, says the report
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The Associated Chambers of Commerce and Industry (ASSOCHAM) has called for simplifying the process of obtaining approvals for land, power, and fibre connections to avoid delays in grounding major investments in IT and data centre projects.“Fragmented approval processes remain a major impediment to large-scale investments in information technology. We need to prioritise development of renewable energy corridors and continuous availability of clean power for large-scale information technology facilities,” it said.The chambers released a report titled Accelerating Telangana: Powering India’s Digital Economy Through Data Centres, AI, and Cloud. Developed by ASSOCHAM and PwC, the report called for the development of specialised programmes for training in infrastructure for AI, engineering of cloud computing systems and operation of data centres through partnerships with industry.In the mid-term (2027–2028), it called for the creation of modular, distributed data centres in close proximity to centres of user load to reduce transmission losses and land acquisition costs.“Expand the use of public-private partnerships for integration of renewable energy sources, technologies for cooling information technology equipment and expansion of fiber transmission capacity,” it said.“We need to offer a stable system of taxes and instruments of green financing to attract investments of enterprises with high standards of environmental and social performance,” it said.In the long term, the chambers’ report called for promoting greater interaction among start-ups, academic institutions and industries through centres such as T-Hub to accelerate the translation of AI research into commercial applications. Addressing the inaugural, Nikhil Chakravarthi J, Commissioner of Industries, Government of Telangana, said that the Government promised reliable power, sustainable water resources, and a strong innovation ecosystem to facilitate the growth of the data centre economy in the State.“Across the industry, the consistent signal is that the centre of gravity is shifting from ‘software as a tool’ to ‘software as a colleague’. We are shifting to the new era of autonomous enterprises. The states and the data centres that host this new AI colleague securely, sustainably, and at scale will capture a disproportionate share of the next decade’s growth,” Lovneesh Chanana, Sr. Vice President & Head of Government Affairs (Asia Pacific), SAP Asia Pte Ltd and Chair, ASSOCHAM IT/ITeS Council, said.Published on May 28, 2026
