New Delhi: Coal India Limited (CIL) is exploring the possibility of establishing data centres in its decommissioned coal mines, aiming to leverage existing infrastructure to meet India’s growing demand for digital capacity while promoting sustainable development. The state-owned miner has already initiated steps for a comprehensive feasibility study, officials told PTI.
Feasibility Study and Shortlisted Sites
The study will assess the viability of data centres in India, with a focus on repurposing decommissioned CIL mines. It will cover site assessments, comparative evaluation of locations, and the preparation of a Preliminary Feasibility Report (PFR) for the most suitable sites. Four locations across CIL subsidiaries have been shortlisted:
- Umrer (WCL)
- Saraipali, Korba (SECL)
- Himgir Rampur near Jharsuguda (MCL)
- Nigahi (NCL)
The study will also analyze the data centre industry in India and globally, including models such as hyperscale, colocation, and edge facilities, along with demand drivers like digitization, artificial intelligence, IoT, 5G rollout, and cloud adoption.
Opportunities and Challenges
The initiative aims to repurpose brownfield sites like mines while integrating renewable energy solutions and expanding into Tier-2 and Tier-3 cities. However, it will also evaluate challenges unique to mine-based data centres, including geotechnical constraints, connectivity gaps, environmental concerns, operational safety, and cost uncertainties.
CIL officials said the project aligns with India’s Digital India and Make in India missions, while optimally utilizing redundant mining assets for high-value infrastructure development. Alongside this, the company is exploring other repurposing strategies for closed coal mines, such as eco-parks, mine tourism sites, and recreational centres.
Market Potential
According to industry estimates, India’s data centre sector is expected to attract USD 20–25 billion in fresh investments over the next five to six years, highlighting a growing demand for digital infrastructure.
The final feasibility report for the CIL initiative is expected by the third quarter of FY26, and the project could set a precedent for sustainable utilization of mining assets in India.
About CIL
Coal India Limited (CIL) is an Indian state-owned enterprise and the world’s largest coal producer, established in 1975 to manage nationalized coal mines. Headquartered in Kolkata, it operates through multiple subsidiaries and is responsible for producing coal and managing related facilities across eight Indian states. As a Maharatna company, CIL holds significant strategic importance by supplying the majority of India’s coal and plays a key role in the nation’s energy security and infrastructure.
