The Parliamentary Standing Committee on External Affairs highlighted significant gaps in India’s data storage infrastructure in its 17th Report presented in September 2026. The report noted that while India generates nearly 20% of the world’s data, it only accounts for about 3% of global data centre capacity, underscoring a disparity between data generation and domestic storage capabilities, according to medianama.com.
The Committee examined where Indian data is stored and processed, revealing that a substantial portion resides on overseas infrastructure due to limited domestic capacity. The Ministry of Electronics and Information Technology clarified that the 20% figure is not supported by standard global datasets and that the 3% data centre capacity is an indicative estimate. The report also explored risks linked to offshore data storage, including national security and digital governance concerns.
This gap in data centre capacity has implications for India’s technology diplomacy and cybersecurity framework. With a significant share of Indian data processed abroad, the country faces challenges in controlling data privacy and protection. The report situates these issues within the broader context of India’s role in global tech diplomacy, AI, and emerging innovations, emphasizing the need for enhanced domestic infrastructure to safeguard data sovereignty.
The Committee’s report calls for strengthening India’s data centre capacity and improving regulatory frameworks to mitigate risks associated with offshore data storage. It also highlights the necessity for robust digital governance policies to address cybersecurity threats. The full report, titled 'India’s Role in Global Tech Diplomacy, Digital Governance, Outer Space Diplomacy, AI and Emerging Innovations,' was presented in September 2026 and is publicly available on medianama.com.