- NITI Aayog has advised Indian states to carefully evaluate their natural resources, including water and power availability, before aggressively pitching for data centres. - Data centres are resource-intensive infrastructure that require massive amounts of continuous electricity and water for cooling systems. - Unplanned expansion of data hubs in resource-scarce regions could strain local grids, exacerbate water stress, and undermine sustainable development goals. - The advisory emphasizes sustainable digital infrastructure planning, aligning technological growth with ecological carrying capacity. - **NITI Aayog:** The National Institution for Transforming India is the apex public policy think tank of the Government of India, promoting cooperative federalism and sustainable development planning. **Introduction** NITI Aayog has cautioned States against aggressively setting up data centres without proper evaluation of local natural resources like water and power. Given that data centres are heavy consumers of energy and water for cooling, the think tank stresses the need for sustainable planning to prevent resource depletion and grid strain. **Core Issue and Detailed Points** - NITI Aayog has advised Indian states to carefully evaluate their natural resources, including water and power availability, before aggressively pitching for data centres. - Data centres are resource-intensive infrastructure that require massive amounts of continuous electricity and water for cooling systems. - Unplanned expansion of data hubs in resource-scarce regions could strain local grids, exacerbate water stress, and undermine sustainable development goals. - The advisory emphasizes sustainable digital infrastructure planning, aligning technological growth with ecological carrying capacity. **Key Statutory Bodies, Acts & Concepts** - **NITI Aayog:** The National Institution for Transforming India is the apex public policy think tank of the Government of India, promoting cooperative federalism and sustainable development planning.