Coal India Explores Data Centres in Decommissioned Mines to Drive Digital Growth and Sustainability

Coal India Limited (CIL) is exploring the possibility of setting up data centres in its decommissioned mines to tap into existing infrastructure and support India’s rising demand for digital capacity.

The initiative aligns with national priorities like the Digital India and Make in India missions while advancing sustainability by repurposing brownfield sites. A feasibility study is underway, focusing on site assessments, connectivity, energy needs, and regulatory compliance across four shortlisted mine locations.

The study, conducted by external consultants, will analyse global and Indian data centre trends, including hyperscale, colocation, and edge facility models. It will also assess demand drivers such as AI, 5G rollout, and cloud adoption, along with potential barriers like power supply, cooling requirements, and environmental challenges.

The report will highlight opportunities to integrate renewable energy and expand digital infrastructure into Tier-2 and Tier-3 cities, while mapping out operational risks specific to mine-based facilities.

This initiative is part of CIL’s broader strategy to diversify operations and optimise the use of idle mining assets. Alongside data centres, the company is exploring other repurposing efforts like transforming closed mines into eco-parks, tourism hubs, and recreation centres.

With India's data centre industry projected to attract USD 20–25 billion in investment over the next five to six years, this move could unlock new growth avenues while contributing to the country’s technological and sustainable development goals.

Repurposing decommissioned mines for data centres is a genuinely interesting circular-industrial move, if the power source is credibly clean and the community-transition planning holds up. Our impact-assessment and data-and-digital teams help clients evaluate mine-to-data-centre transition economics, disclosure implications and just-transition credibility.