CIL mulls setting up data centres in decommissioned mines to boost digital infra, sustainability

New Delhi: Coal India Limited (CIL) was evaluating the potential of establishing data centres in its decommissioned mines, leveraging existing infrastructure to meet the country’s growing demand for digital capacity while advancing sustainable development.

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The state-owned miner had already taken steps for a comprehensive feasibility study by consultants, officials told PTI.

The exercise will include a conceptual study of setting up data centres in India with a special focus on their viability within decommissioned CIL mines.

The study will cover site assessments, preparation of a comparison matrix for evaluating identified locations, and a Preliminary Feasibility Report (PFR) for the most suitable site. Four sites across CIL subsidiaries — Umrer (WCL), Saraipali in Korba (SECL), Himgir Rampur near Jharsuguda (MCL), and Nigahi (NCL) — have been shortlisted.

"The scope of work involved a detailed analysis of the data centre industry in India and globally, classification of models such as hyperscale, colocation and edge facilities, and key demand drivers including digitisation, artificial intelligence, IoT, 5G rollout and cloud adoption," a source said.

It will also assess demand forecasts, sectoral and regional trends, competitive landscape, customer segments, policy environment, regulatory compliance, and entry barriers such as power, cooling and connectivity.

The study will also map opportunities for repurposing brownfield sites like mines, integrating renewable energy use, and expanding into Tier-2 and Tier-3 cities. At the same time, it will evaluate challenges unique to mine-based data centres, including geotechnical constraints, connectivity gaps, environmental issues, operational safety and cost uncertainties.

CIL noted that the initiative aims to align its diversification with India’s Digital India and Make in India missions, while optimally utilising redundant mining assets for high-value infrastructure creation. The final report is expected within the third quarter of FY26.

The state owned miner was adopting multiple repurposing strategies including closed coal mines repurposed into eco-parks, mine tourism sites and recreation centres.

According to a study, India’s data centre industry is expected to attract USD 20–25 billion in fresh investments in the next five to six years.

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