The West Bengal government is considering allowing unused land in 18 industrial parks to be used for setting up data centres as the state looks to expand its presence in India’s growing data-centre market. The proposal involves land parcels in designated industrial parks owned by the West Bengal Industrial Development Corporation (WBIDC) that have not yet been utilised. Officials told The Economic Times that such parcels may be permitted for data-centre development.
The move comes as India’s data-centre capacity is expected to expand significantly over the coming years. According to real estate firm JLL, Maharashtra, Karnataka, Tamil Nadu, Telangana and Uttar Pradesh currently account for around 75% of the country’s data-centre capacity. National capacity is expected to increase to 6 GW by 2029 from 1.6 GW in mid-2026, creating an opportunity for other states to attract investments and strengthen their position in the sector.
West Bengal’s proposal is aimed at making additional industrial land available for data-centre projects. The government is examining whether unused parcels within its industrial parks can accommodate such facilities, according to officials cited by ET. The initiative forms part of the state government’s efforts to establish West Bengal as a data-centre destination and participate in the expected expansion of India’s digital infrastructure market.
Data centres require suitable land and supporting infrastructure to house computing and storage systems used by businesses and digital services. As demand for cloud computing, artificial intelligence and other digital applications increases, companies are looking for locations where large-scale data infrastructure can be developed.
India’s projected growth in data-centre capacity is also encouraging states beyond the existing major hubs to explore opportunities in the sector. The five states identified by JLL already account for three-fourths of India’s current capacity, while the expected increase from 1.6 GW in mid-2026 to 6 GW by 2029 could create room for new locations to attract projects.
For West Bengal, allowing unused WBIDC industrial-park land to be considered for data centres could provide an additional route to support the sector’s expansion. The proposal would make industrial land that is currently not being utilised potentially available for a new category of digital infrastructure, subject to the government’s final decision.
The development also comes amid increasing attention on the infrastructure required to support India’s technology and artificial intelligence growth. Data centres form a critical part of the infrastructure supporting cloud services, digital platforms and computing workloads. As capacity requirements rise, the availability of suitable locations is becoming an important consideration for the industry.
However, the West Bengal proposal is currently at the consideration stage. The government has not announced a final decision to permit all unused land across the 18 industrial parks for data-centre projects. The exact parcels that could become available and the conditions under which they may be used will depend on the government’s finalisation of the proposal.
The state’s consideration of industrial-park land for data centres reflects the broader competition among Indian states to capture a share of the country’s projected digital infrastructure expansion. With national capacity expected to nearly quadruple from its mid-2026 level to 6 GW by 2029, states that can provide suitable land and supporting infrastructure could have an opportunity to attract a greater portion of upcoming data-centre activity.
West Bengal is therefore evaluating whether its existing industrial land resources can play a larger role in the data-centre sector. If the proposal is finalised, unused parcels across the 18 WBIDC industrial parks could become part of the state’s efforts to accommodate future data-centre development and strengthen its position in India’s expanding digital infrastructure landscape.
