MC EXCLUSIVE Tata Power targets data centres as new growth engine; aims 100% clean energy supply by 2030: CEO Praveer Sinha

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Tata Power is eyeing data centres in India as the next big business opportunity and it plans to supply 100 percent green electricity to hyperscale facilities by 2030, the company’s CEO and MD Praveer Sinha told Moneycontrol in an exclusive interview.

He also talked about the company’s plan to build India’s largest factory for ingots and wafers that go into making solar panels.

Sinha said the company is investing in hydro projects in Bhutan and pumped hydro storage systems to ensure round the clock renewable energy in future, most of which will be needed by data centres.

Edited excerpts:

Yes, we see data centres as the next big business opportunity for Tata Power. Data centres need reliable round-the-clock power supply. We are already supplying electricity to seven data centers in and around Mumbai and we have plans to expand to many more upcoming ones all over India.

Initially, our electricity supply to data centres will be a mix of conventional (thermal) plus renewable energy. But going forward, we have plans that from 2030, when we have the energy storage solutions in place such as pumped hydro systems, we will be in a position to supply 100 percent clean and green energy to data centres.

What we are trying to do is offer data centres not just clean energy, but also supplying the same at an affordable and fixed price for 25 years.

Andhra Pradesh, Rajasthan, Gujarat, Karnataka and Maharashtra are likely to be high potential states.

In 2025, a lot of consolidation has taken place. I mean capacity additions have happened and now there is a huge pipeline of projects. For example, in Tata Power 5.4 GW of projects are in pipeline and we will be able to complete all this in the next two years. So, we are totally tied up for the next two years and any new bid that we win will come only in the third year. Till that time, we also hope that the necessary power evacuation system will be built.

This is in fact the scenario for the entire renewable energy sector in India currently, which is why the government is reassessing its scale of tendering such projects.

In 2026, I expect a lot of action in the distribution sector with the federal government likely to bring the Electricity (Amendment) Bill, 2025 in the Parliament. This Bill will allow multiple distribution companies like we have in Mumbai. The government’s plan is also to allow public private partnership in stressed state-owned distribution companies. So, there is lot of opportunity that will come up in 2026.

This is probably going to be the largest factory in India that would manufacture solar wafers and ingots, all of which will help us make solar cells and modules. The location will be decided in about two months from now. Thereafter, we intend to build the factory in 18 months’ time.

We will certainly avail of any upcoming incentive for solar components which the government is planning. Besides, our decision on which state to set up the plant will depend on the support or incentive the state government offers.

Yes, the Board approved it on November 11 and work on the project will start from mid next year. This project will be ready by 2031-32. Hydropower complements Tata Power’s growing solar and wind portfolio, improving reliability for industrial and data-centre clients that require continuous green power.

Tata Power is also working on another 600 MW hydropower project in Bhutan which will be operational by 2029-30.

So, hydropower from Bhutan can supply India during peak hours or low-renewable periods, improving grid stability.

As for pumped storage, the 1000 MW plant we are building in Bhivpuri in Maharashtra is in advanced stage and we expect to be online by 2029. Similarly, our second pumped storage project 1800 MW in Maharashtra’s Shirawta, most of our clearances are in place. We expect work to begin by mid next year.