India offers foreign data center firms a 20-year tax break to boost global competitiveness and investment.

India is proposing a 20-year tax holiday until 2047 for foreign companies using Indian data centres for global services, exempting them from Indian taxation on foreign earnings to boost investment and global competitiveness. The policy ensures a level playing field whether firms operate their own facilities or use local providers. Domestic operators like Nxtra Data, CtrlS, Yotta Infrastructure, and AdaniConneX are expected to benefit. Indian data centres will still pay corporate tax on income from Indian customers and cloud resales. Foreign subsidiaries may claim a 15% safe harbour margin on profits without scrutiny, and sales to Indian users must go through an Indian reseller subject to proper taxation. The initiative aims to strengthen India’s digital infrastructure and global data services role.