Coal India Limited (CIL) has begun evaluating the possibility of converting its decommissioned mines into data centres, aiming to repurpose redundant assets while catering to India’s surging demand for digital infrastructure. Officials confirmed that a detailed feasibility study has been commissioned with consultants, and the final report is expected in the third quarter of FY26.
Four Mine Sites Under Evaluation
According to officials, four locations have been identified across CIL subsidiaries for site assessment, Umrer in Maharashtra (WCL), Saraipali in Korba (SECL), Himgir Rampur near Jharsuguda (MCL), and Nigahi in Madhya Pradesh (NCL). The study will examine infrastructure potential, comparative advantages, and site-specific challenges before preparing a Preliminary Feasibility Report (PFR) for the most viable location.
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Aligning with Digital India and Sustainability
The scope of the study includes analysing India’s data centre industry, comparing global benchmarks, and exploring models such as hyperscale, colocation, and edge facilities. Key demand drivers like artificial intelligence (AI), IoT, 5G rollout, and rapid cloud adoption will be mapped alongside regulatory frameworks, connectivity, and cooling challenges. Coal India is also exploring the integration of renewable energy and the expansion of digital hubs into Tier-2 and Tier-3 cities, in line with Digital India and Make in India missions.
Repurposing Mines Beyond Coal
This initiative forms part of Coal India’s wider plan to unlock value from redundant coal assets. The company is simultaneously pursuing mine repurposing projects such as eco-parks, mine tourism hubs, and recreation centers. Industry analysts estimate India’s data center sector will attract 20 to 25 billion USD in new investments over the next five to six years, providing an opportunity for CIL to position itself in the digital economy while ensuring sustainable utilisation of former coal sites.
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